Institutional FX Trading Sees Strong Advance in January – SEF Tracker Shows

FX, credit trading, and interest rates were all pointed higher during the first month of the new year.

FIA, a global trade organization for futures, options and centrally cleared derivatives, has released its latest swap execution facility (SEF) tracker for January 2017, which showed a healthy increase in FX trading and other instruments on a monthly basis relative to December 2016.

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In terms of interest rates during January 2017, by far the largest component of volumes measured by the SEF tracker, total trading averaged $484.6 billion per day, up by a factor of 28.4 percent month-over-month from December 2016. The latest figure was also pointed higher over a yearly basis, reflective of a growth of 17.8 percent year-over-year from January 2016.

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Interest rate volatility managed to edge higher in January 2017, influenced in part by several market moving events, such as the incoming administration and turnover of Donald Trump in the United States. Moreover, seasonal factors and a normalization of volatility also helped drive volumes higher in January.

FX Trading Volume Sees Strong Advance

Looking at the foreign exchange (FX) space however, total trading in January 2017 came in at $40.8 billion per day, corresponding to a net increase of 15.6 percent month-over-month from December 2016, along with a yearly advance of 6.6 percent year-over-year from January 2016.

Furthermore, average daily trading in credit trading was $17.4 billion per day, climbing 8.6 percent month-over-month in January 2017. This climb was completely stifled over a year-over-year basis, diving -53.0 percent from January 2016.

The overall market share for the FX market did see some minor moves in January 2017, with ICAP leading the way with 23.6 percent, followed by BGC with 21.7 percent, Tradition with 17.0 percent, GFI with 16.9 percent, Tullett Prebon with 16.8 percent, and with TRSEF 2.3 percent, Bloomberg with 1.3 percent.

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