FXSpotStream’s May Volumes Bounce Off 2017 Lows, Kindled by Volatility

May's volumes were given a welcome boost, as market drivers helped buoy FXSpotstream's trading activity.

FXSpotStream LLC, a provider of multibank FX streaming aggregation matching services, has reported its latest volumes for May 2017. Volumes over this past month were subject to a number of different conditions, ranging from higher market volatility to a lengthened trading schedule.

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May 2017 features a total of 23 trading days relative to just 20 back in April 2017. For the month ending May 2017, the group reported an average daily volume (ADV) of $17.4 billion, up 1.7 percent month-over-month from $17.1 billion in April 2017.

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Despite this higher figure, May’s overall ADV was tempered by the observance of the May 1 and Memorial Day holidays in the United States on May 29. By removing these two days, FXSpotStream’s ADV managed to come in at $18.3 billion, a 7.0 percent increase on a monthly basis, as well as a 14.0 percent jump year-over-year from $16.1 billion in May 2016.

Another factor that contributed to the increase in trading volumes was a constant flow of political scandals in the United States, specifically from the Donald Trump administration. Europe was also immersed in the French elections during May, which was center stage for much of the month – these factors collectively contributed to much higher volatility on a monthly basis, something that was largely lacking back in April.

Looking at FXSpotStream’s ADV overall relative to May 2016, the latest figures (including the recent holidays during the month), was still 8.7 percent higher year-over-year from May 2016. H1 2017 has also largely seen an intact downward trend in volumes. After peaking in January 2017 at $18.9 billion, the group’s volumes have fallen 7.7 percent year-to-date.

The culprit is swinging markets that have suffered from droughts of volatility. This in turn has impacted FXSpotStream’s volumes, which supports trading in FX Spot, forwards, swaps, NDF/NDS, and spot precious metals. A similar trend was also seen last year in H1 2016, which abruptly reversed during June 2017 following the Brexit referendum in the UK that ultimately helped stimulate markets.

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