The institutional forex trading demand recovered in May while the monthly spot trading volume rebounded significantly from the dips in April, which is a trend seen in the latest figures of Cboe FX Markets and Deutsche Börse's 360T.

A Monthly Uptick in Spot FX Volumes

According to the official numbers, Cboe FX Markets handled $938.9 billion in total spot trading volume in May, which is an increase of more than 18.2 percent from the previous month. In addition, the figures jumped 7.8 percent from $870.4 million last year in May. However, it remained lower than the $1.1 trillion in spot forex volume Cboe handled last March.

Despite a considerable jump month-over-month, the average daily volume (ADV) of Cboe FX Markets for last month came in at $40.8 billion compared to $39.6 billion a month before. The narrow gap between the two ADVs was due to the higher trading days in the last month: May had 23 trading days, while April had only 20. Compared to the peak in March, the ADV dropped 15.5 percent.

Moving away from FX volumes, Cboe's revenue from its FX business is growing at a solid pace. The net revenue from foreign exchange trading activities on Cboe Global Markets' platforms increased 8 percent year-over-year during the first quarter of 2023. What's more, the American giant revealed that the market share of Cboe FX increased to 19 percent during the quarter.

Non-American Markets

360T, one of Europe's biggest institutional FX trading platforms, reported $593.6 billion in trading volume last month, which is higher that the $507 billion in April. Similar to Cboe, the European venue witnessed a drop in demand from the $642 billion in volumes it handled in March.

However, European demand remained flat year over year as the venue reported a trading volume of $591 billion for May last year. According to the latest figure, the ADV for last month came in at $25.8 billion, which is marginally higher than the $25.3 billion seen in the previous month.

Japan's Click365, an FX derivatives venue operated by the Tokyo Financial Exchange, handled a trading volume of 24 million contracts last month at a daily average of 108,365 contracts. Furthermore, the demand escalated by 31.4 percent from the previous month while descending 17.3 percent year-over-year.

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