Gold Market Issues Hit Total Trading Volumes at PrimeXM

PrimeXM has reported weaker trading volumes for April, in line with other institutional and retail platform that saw the activity of their clients nearly halved compared to a month earlier when the coronavirus pandemic stocked unprecedented volatility across varying asset classes.

The provider of FX bridge aggregation and institutional hosting solutions today revealed an average daily volume (ADV) of $41.40 billion, down 14 percent month-on-month from $48.22 billion reported back in March.

Having hit the $1.15 trillion milestone the previous month, total turnover at PrimeXM took a step back in April, coming in at $910.86 billion, or 21 percent less than it was in March.

A notable drop in PrimeXM’s operational metrics was seen across its Gold instrument XAUUSD, which slid down to 4th position from its top spot last month. While the yellow metal accounted for 20 percent or $223.6 billion of March’s overall traded volume, the disruption of the supply chain of the physical commodity had cut its spot volumes by over 60 percent to $88.74 billion.

The bullion 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 was thinner in early April due to logistics issues as the coronavirus has decimated supply chains across the world. This has led to much wider spreads than usual while margin requirements increased; as a result, trading volume took a hit.

EURUSD took the top position in April (17.92% of all volume), and major US indices also picked up in volumes due to volatility in stock markets

Other business highlights show that London LD4 was the strongest across its three major data center locations, with $669 billion worth of trades exchanged hands there, compared to $138 billion in New York and $102 billion in Tokyo.

Founded in 2010, PrimeXM’s key business focus is providing aggregation software, low-latency connectivity, hosting solutions, and high-end MT4/MT5 bridging and white labels. In addition to their primary product XCore, PrimeXM offers hosting services in the most popular data centers used by the FX industry, such as Equinix LD4, NY4, and TY3, which enables clients to house their trading systems and algos in co-location to their execution engine and Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term.