Average daily trading volumes across FXSpotStream LLC platforms surged by over a fifth to a new record in June 2019 on broad growth across different foreign exchange instruments, the aggregator service of LiquidityMatch LLC said today.
Other institutional FX platforms including Cboe FX, CLS, and Thomson Reuters are also expected to report a big rise in volumes of last month as volatility picked up and the secular trend of rising FX volumes comes into play again.
During June 2019, FXSpotStream reported an average daily volume (ADV) of $42.2 billion, which represented a jump of 21 percent month-on-month from $34.8 billion reported back in May 2019. Across a yearly interval, the ADV metric in June 2019 reflected an advance of nearly 40 percent from year-ago levels when weighed against $30.3 billion in June 2018.
The figure is a new all-time high, besting the previous record set back in January 2019 at $38.3 billion.
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A Client to Bank Platform
June 2019 saw a total of 20 trading days, compared to 23 days in the month prior. In terms of total volumes at FXSpotStream, June 2019 showed $845 billion, also representing a new record for the platform and was higher by five percent month-on-month from $802 billion the previous month.
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 6 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.