NEX Markets has released its EBS electronic trading platform volumes for the month ending November 2017. The latest figures corroborated a broader industry trend, which saw static figures during the month as FX markets remained in wait-and-see mode ahead of ongoing political developments.
FX markets were largely dictated by actions in the United States, with uncertainty surrounding a landmark tax bill championed by the Trump administration and the Republican Party. Consequently, volatility was noticeably lower amidst a period of deliberation as the historic bill hung in the balance for much of the month.
In particular, spot FX trading via NEX Markets’ EBS electronic trading platform came in at $82.3 billion daily. This is a tepid increase of 2.1 percent month-over-month from $80.6 billion daily in October 2017 – in line with the rest of the FX industry’s institutional venues.
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On a year-over-year basis, the latest reading lags behind by a factor of 23.0 percent from $107.5 billion daily in November 2016. Last year’s volumes in November were dictated by the US election, which saw an influx of volatility and trading activity surrounding Donald Trump’s surprise electoral victory.
Looking ahead, spot FX volumes are expected to be much higher in December, as the aforementioned tax bill has already garnered the votes necessary for inevitable passing. Moreover, a bombshell report was brought to light surrounding Michael Flynn interaction with the FBI over Russian collusion, triggering movement in the USD.
Fixed Income Market Review
Looking to US Treasuries, EBS Markets also experienced a muted movement in its volumes. The latest reading was reported at $156.7 billion per day in November 2017, down 2.0 percent on a monthly basis from $160.7 billion in October 2017. The figure was much lower when measured against its 2016 counterpart, retreating 27.0 percent over a year-over-year period.
European repo changes were also unchanged month-on-month with the total figure of €240.4 billion representing a 2.0 percent decline in November 2017. This number however, was over 25.0 percent percent when compared to November 2016. Over the past few months, NEX Markets’ European repo has been the fastest growing segment the group relative to 2016.