The first group of institutional FX platforms to report their monthly volumes indicate that November was a busier month all round, with FXSpotStream setting its third-highest ADV on record.
Total trading volumes on FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, ticked higher last month, helped by a rise in politically driven volatility. Specifically, November’s figure came in at $934 billion, which is up 10 percent from $855 billion in the previous month and jumped by over 42 percent on a yearly basis.
November’s average daily volume (ADV) of $44.5 billion is the highest monthly reading for this metric since it hit an all-time high at $62.3 billion back in March. Additionally, this figure is higher by 14.5 percent from $39.8 billion in October 2020 and increased 44 percent year-over-year when compared with $30.9 billion in November 2019.
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November 2020 saw a total of 21 trading days, compared with 22 days in the month prior.
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Activity on FXSpotStream’s trading venue has been consolidating over the last few months, namely since the aggregator service of LiquidityMatch LLC reported a record $1.37 trillion in total volumes for March.
Other institutional FX platforms including Cboe FX, CLS, and Thomson Reuters are expected to report a big rise in volumes for last month as volatility picked up and the secular trend of rising FX volumes comes into play again.
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.