Thomson Reuters FX Volumes Hit Multi-Year High in September 2017

Thomson Reuters (NYSE:TRI) has reported its monthly trading statistics and volumes for September 2017, which printed a three-year high of $411 billion per day. The month was characterized by a number of influential factors across global markets, including interest rates and fiscal policies speculation in both the US and Europe, which ultimately helped spark 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.

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Relative to a rather uneventful August, September 2017 proved to yield a far more dynamic market for FX. In the United States a combination of factors ranging from the "Trumpflation trade" to expectations for U.S. interest rate hikes helped spur markets, the company said.

In particular, Thomson Reuters saw a total average daily volume (ADV) of its foreign exchange (FX) products, including spot, forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term options and non-deliverable forwards (NDF), coming in at $411 billion, an increase of 7 percent year-over-year from $365 billion in September 2016. Additionally, the figure was higher compared to August 2017, marking a gain of 11.9 percent month-over-month from $367 billion the month earlier.

Of the $411 billion, $103 billion was FX spot, the highest since June 2016 and also representing a notable advance over both monthly and yearly intervals. The latest figure reflects a 25.6 percent rise from the $82 billion set back for FX spot volumes in August 2017. On a year-over year basis, spot volumes were also pointed higher after managed to overcome the $94.0 billion reported a year ago – this was a march higher of 9.6 percent year-over-year.

Other transaction types – including forwards, swaps, options and non-deliverable forwards (NDFs) – averaged $308 billion daily, up 8.07 percent from $285 billion the previous month.

The latest performance follows an industry trend, which saw most ECNs and trading venues secure growing volumes in September.