Thomson Reuters (NYSE:TRI) had a wild start to the new year and that appears to have translated into record-breaking trading volumes across its foreign exchange business. January 2018 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.
Relative to a rather uneventful December, January 2018 proved to yield a far more dynamic market for FX. Thomson Reuters also successfully onboarded more buy-side clients and liquidity providers onto its enhanced Multilateral Trading Facility (MTF), post-MiFID II implementation, the company said.
In particular, Thomson Reuters saw a total average daily volume (ADV) of its foreign exchange (FX) products, including spot, forwards, swaps options and non-deliverable forwards (NDF), coming in at $432.1 billion, an increase of 10.2 percent month-over-month from $392 billion in December 2017.
Additionally, the figure was higher compared to January 2017, marking a gain of 26.3 percent year-over-year from $342 billion a year ago.
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Of the $432 billion, $107 billion was FX spot, which also represents a notable advance over both monthly and yearly intervals. The latest figure reflects a 22.7 percent rise from the $88 billion set back for FX spot volumes in December 2017. On a year-over year basis, spot volumes were also pointed higher after managed to overcome the $91.0 billion reported a year ago – this was a march higher of 18.7 percent year-over-year.
Other transaction types – including forwards, swaps, options and non-deliverable forwards (NDFs) – averaged $325 billion daily, up 7.0 percent from $304 billion the previous month.
The latest performance follows an industry trend, which saw most ECNs and trading venues secure growing volumes in January.
Commenting on this, Neill Penney, co-head of Trading at Thomson Reuters said: “Following preparation for and then implementation of one of the most complex regulatory initiatives in a generation, our success over the last month reflects the value we place in listening to our clients and ensuring our solutions meet their MiFID II needs. As the market evolves, we are committed to making additional enhancements across our trading businesses, including enriched analytics and algo trading capabilities.”
Thomson Reuters CEO Jim Smith was hospitalized in Toronto yesterday “after feeling unwell and remains under observation at the hospital”, the company said on Tuesday.
The information provider didn’t disclose further details but said its CFO Stephane Bello will oversee Mr. Smith’s responsibilities during his absence.