NEX Markets’ Data Corroborates Recent Rebound in FX Volumes

Daily spot FX volume on NEX Markets’ platform averaged $86.1 billion last month.

FX and U.S. Treasury trading volumes picked up in September 2018 as the steady ‎‎appreciation in US dollar coincided with the continued uptick of a 10-year US ‎‎yield which has recently reached its highest level in nearly seven years.

Daily volume in spot foreign exchange on NEX Markets’ platform, one of the ‎‎largest FX institutional trading platforms, averaged $86.1 billion last month, the highest since June and ‎‎up 2 percent from $84.7 billion in August 2018. On a year-over-year basis, however, the figure ‎‎is 12 percent lower from $97.4 billion daily reported during September 2017, ‎‎data released by NEX Group plc showed on Tuesday.‎

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The stronger volumes in September corroborated a recent rebound in ‎volumes ‎across the industry, snapping momentum seen in ‎the last two months.‎

NEX is a financial technology company that ‎matches buyers and sellers of ‎bonds, swaps, and currencies.‎ Formerly called ICAP, NEX Group rebranded ‎as an electronic trading, post-trade, and fintech company after Tullett Prebon ‎bought its voice trading ‎business for £1.3 billion ($1.6 billion) ‎in 2016.‎

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Earlier in March, the UK-based Fintech company received a proposal from CME Group to acquire its shares at an indicative cash price of £10 ($14) per share, which would value NEX at ‎£‎3.80 billion ($5.35 billion).

Brokers and ECNs have snapped the summer’s weak ‎performance and built on ‎its ‎robust performance in 2018, ‎with trading volumes setting fresh records‎ at certain venues.

Towards the end of September, the Federal Reserve’s decision to hike rates and affirmation of policy tightening cycle led to a stronger ‎‎US dollar, and an increase in volumes as strong inflation and employment ‎‎data boosted odds of additional rate rises.‎

Separately, the average daily volume of US repurchase agreements (repo) ‎‎was $226 billion in April, down four percent from a ‎year earlier but inched up by a similar percentage compared to August.‎

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