The leading ECN for foreign exchange derivatives contracts, Hotspot, reported trading volumes for the month of February. Volumes dropped considerably during the month, which also suffered from a drop in market volatility. The firm transacted over $528 billion during the entire month. However, the figure was 26% lower from figures reported a month earlier.

The US-based venue, which was acquired by BATS, reported that average daily trading volume for February was $26.42, lower then January’s figure of $34 billion.

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Trading volumes are correlated with market volatility. In the second half of 2014, Hotspot’s volumes spiked in key months that were heavily impacted by international geo-political events. In September 2014, the Sottish referendum, coupled with the EU’s quantitative easing programme saw total monthly volumes sky-rocket to $841 billion, the highest for the year, with the average daily number of transactions at $38.2 billion.

The latest drop in volumes puts monthly totals below the $600 billion mark for the FX ECN, figures not seen since July 2014. During the second half of last year, the firm’s average daily volume was consistently above the formidable thirty-billion mark.

The recent M&A activity affecting the ECN, with BATS acquiring the venue, is believed to be creating a stronger link between OTC and exchange traded products in the forex markets. The move also signifies BATS’ first move into the congested spot FX space. Previously the firm has been reported as stating that it is reviewing new products such as contract for differences (CFD).