Activity on FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, dropped in July as average daily trading volumes took a step back from the record figures it printed the month prior.
During July 2019, FXSpotStream reported an average daily volume (ADV) of $36.27 billion. The number moved lower on a monthly basis by 14.2 percent from $42.25 billion back in June 2019, when volumes shot up to a new all-time high. This figure, however, reflects a year-on-year increase of 31 percent compared with $27.7 billion in July 2018.
FXSpotStream’s ADV in July was 27.5 percent greater than HotSpot’s ADV of $27.5 billion, exceeding the Cboe’s venue every month since November 2018, with the exception of one month.
Meanwhile, FXSpotStream saw a slight drop across its total trading volumes in July 2019 after reported $834 billion for the month, down 1.29 percent month-on-month from $845 billion back in June 2019.
The company’s trading facilities were open on 23 trading days, which is three days more than the prior month.
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Daily volumes in the currency market have been hurt in July by seasonal factors. Aside from the usual summer lull, a lack of fresh incentives and uncertainties over central banks’ policies to jump-start their respective economies, were keeping investors mostly in the wings.
Earlier today, Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) reported flat volumes for July 2019 which came almost unchanged from the previous month.
A Client to Bank Platform
FXSpotStream is a wholly-owned subsidiary of LiquidityMatch LLC and was created as a cost-effective platform, which is offered on a commission-free model for buy-side firms to tap pricing from banks using a multi-dealer aggregating platform.
The group started the streaming aggregation business in 2011 with just a spot FX API and six liquidity providers, but now utilizes liquidity from a total of twelve leading global banks – BofA Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Commerzbank AG, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered, and UBS.
FXSpotStream’s offering is a client-to-bank platform, with each liquidity taker required to create individual credit relationships with participating banks. This differs from other multi-dealer platforms such as FX ECNs like Hotspot and EBS Markets that operate with centralized order book systems for their participants.