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

FIA, a global trade organization for futures, options and centrally cleared derivatives, has released its latest swap Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term 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.

Interest rate Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.