FXSpotStream Monthly Volume Rises Again above $900B Mark

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 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. 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.

Cboe FX, CLS and Thomson Reuters to Follow Suit

November 2020 saw a total of 21 trading days, compared with 22 days in the month prior.

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.

The rise in FX volumes will be welcomed by both retail and professional platforms, including major exchanges, that have struggled with calm financial markets squeezing their profits in recent years.

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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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.