NEX Markets’ EBS Volumes Soar in May, Snap Recent Weakness

Daily volume in spot foreign exchange on NEX’s EBS platform averaged $101.3 billion last month‎.

FX and U.S. Treasury trading volumes picked up in May 2018 as the steady ‎‎appreciation in US dollar coincided with the continued uptick of 10-year U.S. ‎‎yield which reached 3.12 percent, its highest level in nearly seven years.

Daily volume in spot foreign exchange on NEX’s EBS platform, one of the ‎‎largest FX institutional trading platforms, averaged $101.3 billion last month, the highest since February and ‎‎up 25 percent from a year earlier. On a month-over-month basis, the figure ‎‎is also 21 percent higher from $83.4 billion daily reported during April 2018, ‎‎data released by NEX Group plc showed on Monday.‎

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The weak volumes in April corroborated a recent downtrend in ‎volumes ‎across the industry, snapping momentum seen in ‎Q1 of this year.‎

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 April’s weak ‎performance and built on ‎its ‎robust performance in 2018, ‎with trading volumes setting fresh records.‎

Towards the end of May, rising yields on US Treasuries led to a stronger ‎‎US dollar, and an increase in volumes as strong inflation and employment ‎‎data boosted odds of a third additional rate rise by the Federal Reserve.‎

Separately, the average daily volume of US repurchase agreements (repo) ‎‎was $229 billion in April, down 2 percent from March but up 6 percent ‎from a ‎year earlier.‎

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