EBS Sees FX Volumes Decline 5% in February on Overall Weak Month of ICAP eTrading

Interdealer ICAP has posted its February volumes on its electronic trading platforms. According to the firm, total average daily volumes (ADV) were $701 billion, 5% below January’s activity and a 13% decline from the same period in 2013. The month-over-month contraction was experienced in each of ICAP’s platforms which consist of US Treasury, US Repo, European Repo and FX trading.

In FX, average daily volumes on EBS, which now consists of both the firm’s ECN and relationship-based trading, were $83.5 billion. February’s figure was 5% below January’s activity, and 44% below the $149 billion figure posted in the same period in 2013, which was EBS’s best month last year.

The decline in FX volumes comes as other venues have been reporting a drop in trading due to a fall in overall currency 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. However, the decline in ICAP’s overall numbers contrasted with that of the CME which has experienced growth in its comparable interest rate products. Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reached out to ICAP for comment on the decline in volumes but as of publishing time have yet to receive a response from the firm.