Institutional foreign exchange (FX) platform operator Cboe FX released its trading volumes for the second quarter of 2018 this Wednesday. The firm saw strong year-on-year growth in trading but a slump in quarter-on-quarter terms.
Unlike other firms, Cboe FX does not provide a thorough report of trading activities. As such, though we can see raw numbers, it is difficult to give precise reasons as to why the firm’s most recent quarter saw the activity that it did.
They likely reflect a broader trend in the FX market. Volatility rose in the first quarter of this year, galvanizing trader activity. This meant volumes in the FX market have, thus far, been higher than in 2018 than 2017.
Unfortunately for firms such as Cboe FX, this state of affairs has not lasted. Though the second quarter of this year has seen a more active FX market than the second quarter of last year, the market has not been as volatile as it was in Q1 of this year.
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Cboe trading volume
Indeed, Cboe FX reported its average daily trading volume for the second quarter of this year as $38.41 billion. This was substantially greater for the same period in 2017 when the firm had an average daily trading volume of $27.93 billion. On the other hand, it was slightly less than the first quarter of 2018, for which the average daily trading volume was $41.57 billion.
As is to be expected, this scenario, of year-on-year growth and quarter-on-quarter decline, was also reflected in the firm’s total volumes for its most recent quarter. Cboe FX reported that its total trading volume for the most recent quarter was approximately $2.50 trillion.
That was a massive improvement on last year’s second quarter in which the firm recorded a total trading volume of $1.82 trillion. Again, however, it was slightly less than the firm’s 2018 first quarter results where it recorded a total trading volume of $2.66 trillion.
Fortuitously, with regard to its year-on-year record, the firm had an equal number of trading days for the second quarter of both 2018 and 2017. As such, no one can say that the firm had extra time to bolster its revenues this year.
Unfortunately, the firm also can’t claim it had fewer days in this quarter when compared to last. In fact, Cboe FX had one more trading day in Q2 of this year than in Q1.