Total volumes of spot foreign
exchange traded on Electronic Broking Services (EBS) reached $52.9 billion in
April 2023, CME Group disclosed on Friday. EBS is the American derivatives
exchange operator’s wholesale electronic trading platform for forex trading
with market-making banks.FX Link Grows, Spot FX Slumps across RegionsFinance Magnates reports that trading activities in spot FX among institutional investors weakened last month across regions, as data from Chicago-based Cboe FX, Deutsche Börse’s 360T, New Jersey-based FXSpotStream and Japan’s Click 365, show. Russia is also not left out as spot FX trading on the Moscow Exchange, Russia’s largest exchange group, tumbled 10% month-over-month (MoM) to RUB 7.6 trillion ($96 billion).The decline came after major trading venues posted stronger output earlier in March. On the contrary, the average daily volume (ADV)
of FX Link, CME’s spot FX basis spreads, grew by 32% in April 2023 versus
the same period last year. However, the derivatives exchange operator did not
disclose the value of the volume. In March, FX Link ADV jumped 34% year-over-year.“In general, April volatilities
in G3 pairs and CNH were all at or near 12-month low points during April, which
not only impacts market volumes as a whole but can have a heightened impact on
inter-bank centric-platforms and central limit order book volumes,” explained
Jeff Ward, Global Head of EBS at CME.According to Ward, CME in April
saw continued adoption of EBS Direct Forwards, its platform for optimal
execution and management of FX forward risk. During the past month, average
daily volume on the platform shot up 61% year-over-year.Meanwhile, Finance Magnates earlier
reported that “flight to futures” jetted CME Group’s
revenue to $1.4 billion
during Q1 2023, its second-highest quarterly revenue. The jump came as global
market participants sought to manage risks across asset classes during the
period, noted Terry Duffy, CME Group’s Chairman and Chief Executive
Officer.In the latest report, CME noted
that trading in FX futures and options in April grew 5% year-to-date (YTD) compared
to the same period in 2022. It further noted that YTD open interest on FX
futures also rose 5% versus the same period in 2022.CME Sees Second-Highest April
ADV on RecordMeanwhile, at the end of April,
CME recorded an ADV of 19.8 million contracts, which is its second-highest
April ADV ever. The growth built on strong ADV increases in options, commodities
and cryptocurrencies.Earlier, CME hit its second-highest March ADV with daily average volume growing by 24% to reach
30.3 million contracts. Additionally, the exchange’s first quarter 2023 ADV
increased by 4% to 26.9 million contracts, representing the second-highest
quarterly volume ever.The monthly and quarterly growth
was pushed by increases in ADV across most of the CME Group’s products and
offerings including interest rates, options, equity index and digital asset
derivatives.
This article was written by Solomon Oladipupo at www.financemagnates.com.
