Institutional FX Volumes Ease in December After Three-Month Rally

Cboe's spot platform processed $1.07 billion in total December volumes with average daily turnover of $48.6 billion across 22 trading sessions, slipping 2.3% from November's $49.6 billion daily pace but still up 18.5% from December 2024's $41.0 billion.

The pullback marked the first monthly decline since August and came as currency volatility subsided following the Federal Reserve's December rate decision.

FXSpotStream's institutional ECN saw sharper deceleration, with total average daily volume falling to $123.1 billion from November's $125.0 billion, though the figure remained 34% above December 2024's $92.1 billion.

CLS Group, which settles the bulk of institutional FX transactions, reported average daily volumes of $2.38 trillion in December, up 17% year-over-year. The settlement giant saw spot volumes rise 8.9%, FX swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term increase 19.2%, and forwards jump 25.2% compared to December 2024.

European Platforms Close Strong Year

Deutsche Börse's 360T platform posted December volumes of $741.2 billion with average daily turnover of $32.2 billion, maintaining steady activity levels despite reduced volatility in euro crosses. Euronext FX processed $481.5 billion in total monthly volumes with daily averages reaching $30.1 billion.

• Gold Dominates Trading at Axi as Volatility And Record XAU Price Drive CFD Volumes
• Spotware Doubles Trading Volume as cTrader Adds 2 Million Users
• Year End Trading Volume Hits $63 Trillion on Tradeweb; What It Means for Retail Traders

The European venues benefited from year-end rebalancing flows and corporate hedging activity, though trading remained below October's three-month highs when dollar volatility drove activity across major platforms.

Tokyo Financial Exchange's Click 365 retail-focused platform recorded 1.58 million contracts in December with daily averages of 68,736, down 0.7% from November but up 3% year-over-year. The yen-denominated platform continued to recover from mid-year lows as Japanese retail traders returned to currency markets.

Full-Year Picture Shows Broad Gains

For calendar 2025, Cboe FX reported record annual spot volumes with average daily notional reaching $49.7 billion, surpassing 2024's record of $45.4 billion by roughly 9.5%. The Chicago-based venue benefited from heightened currency volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term tied to Federal Reserve policy shifts and geopolitical uncertainty that drove strong performance throughout the year.

Institutional traders faced a choppy environment in late 2025 as central banks diverged on policy paths. The Fed delivered three quarter-point rate cuts between September and December while the European Central Bank held rates steady through year-end, creating trading opportunities in major crosses that sustained activity levels well above historical norms.

The December slowdown suggested some institutional desks reduced risk ahead of year-end, a typical pattern as banks lock in annual profits and hedge fund managers close positions. Trading volumes typically rebound in January as new capital enters the market and macro positioning resumes.