Gain Capital’s institutional arm GTX released its volume figures for December 2017, illustrating a significant decline from the previous month. GTX is a provider of institutional FX execution methods, enabled by its Electronic Communications Network (ECN), Swap Execution Facility (SEF), and Voice Agency Desk.
GTX’s monthly volume in December totaled roughly $246.7 billion, down 23% from November. The decline is composed of GAIN’s ECN and SEF volumes falling 19%, while the Swap Dealer platform endured a steeper dive of 42%. Meanwhile, Average Daily Volume (ADV) in December 2017 was posted at approximately $12.34 billion, which is 15% lower than November, but unchanged from December of 2016.
The numbers illustrate a decline relative to December 2016 levels as well, falling a total of 9%, despite gains of 7% in ECN and SEF volumes. This is directly attributed to a substantial dip of 56% in Swap Dealer volume relative to the same month of the previous year. Concerns over a developing pattern are likely premature, although it is noteworthy that this is the third consecutive month, in which GTX has posted flat volume levels. Following a downward tick in volume in October, the company posted numbers that solidify this trend over the past few months.
While the numbers initially appear dim, the bigger picture appears far more positive. Relative to 2016, volume levels are actually on the rise in FY 2017. Total volume has risen by 25% overall, with a 37% increase in ECN and SEF volume, and a decline of 8% in the Swap Dealer platform.