NEX Markets Spot FX Volumes Fall MoM in July

Daily spot fx volumes fell by 15 percent compared to June’s results.

NEX Group plc, (NXG.L), the operator of NEX Markets, has announced its monthly average daily volume data for July 2018. The results, which cover its electronically traded products, show that NEX Markets had a lackluster month, down in all segments from June this year.

NEX Markets electronically trades spot foreign exchange, US Treasuries, European and US repurchase agreements (repo) products. While some of these segments are up year-on-year, all segments are down from June, which in turn saw weak volumes when compared to May.

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Looking first at the Spot FX on NEX’s EBS platform, one of the ‎‎largest FX institutional trading platforms, the average daily volume in July 2018 was $81.9 billion. This was a slight increase from the same period last year, which had a daily average volume of $81.6 billion. However, when compared to June this year, the volumes are down by 15 percent. On a yearly basis, for the 12 months ended July 31, 2018, volumes were up by eight percent when compared to the prior period.

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The average daily volume for European repo on NEX Markets was €250.3 billion in July. This was a jump of 10% from July 2017. For the 12 months ended July 31, 2018, volumes were also up by 23 percent when compared to the previous corresponding period. However, when compared to June this year, volumes declined by seven percent.

US repo daily average volumes fell slightly year-on-year by one percent in July this year, coming in $222.2 billion. However, US repo volumes had the smallest month-on-month decline out of the four products, falling by three percent. For the year ending July 31, 2018, average daily volumes were up nine percent year-on-year.

US Treasuries see all-round declines

The average daily volume for US Treasuries on the EBS Markets, also posted the most notable year-on-year decline, falling by 14 percent to $125.4 billion from July last year. The segment also saw a significant drop of 20 percent in volumes from the previous month. Furthermore, for the year ending July 31, 2018 volumes declined by one percent year-on-year.

For this segment, the volumes include UST Benchmarks and Agencies. The statement from the company adds that Off-the-Run securities, including T-Bills, are provided under an agreement with ICAP Securities USA LLC.

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