FXSpotStream LLC, the aggregator service of LiquidityMatch LLC, has built on its robust performance throughout 2018, setting another monthly volume record for January 2019, en route to fresh highs in the group’s seven-year history.
FXSpotStream got off to a strong start of the year as investors ramped up bets on a weaker dollar after the Federal Reserve suspended its previous plans to continue raising rates this year.
Cboe FX, another big player in the institutional FX market, today reported a 19 percent rise in average volumes in January. Other trading platforms including CLS and Thomson Reuters are also expected to report a big rise in volumes of last month as volatility picked up.
During January 2019, FXSpotStream reported an average daily volume (ADV) of $38.3 billion, which represented a jump of 18 percent month-on-month from $32.5 billion reported back in December 2018. Across a yearly interval, the ADV metric in January 2019 reflected a more upbeat picture, climbing by 45 percent.
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The figure is a new all-time high, besting the previous record set in September 2018 at $31.9 billion.
January 2019 saw a total of 22 trading days, the same as in the month prior. In terms of total volumes at FXSpotStream, January 2019 showed $844 billion, which was also higher 23 percent month-on-month from $683 billion in December 2017.
A Client to Bank Platform
FXSpotStream is a wholly owned subsidiary of LiquidityMatch LLC and was created as a cost-effective platform, which is offered on a commission-free model for buy-side firms to tap pricing from banks using a multi-dealer aggregating platform.
The group started the streaming aggregation business in 2011 with just a spot FX API and six liquidity providers, but now utilizes liquidity from a total of twelve leading global banks – BofA Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Commerzbank AG, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered, and UBS.
FXSpotStream’s offering is a client to bank platform, with each liquidity taker required to create individual credit relationships with participating banks. This differs from other multi-dealer platforms such as FX ECNs like Hotspot and EBS Markets that operate with centralized order book systems for their participants.