CME Group’s EBS Spot FX Returns Near-Flat Growth in November

The Chicago Mercantile
Exchange (CME) Group’s Electronic Broking Service (EBS) posted a near-flat
0.3% growth rate in spot forex trading in November, generating $67.2 billion in average
daily notional value (ADNV). In October, the numbers came in at $67 billion, <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-ebs-spot-fx-follows-trend-adnv-slumps-12-in-october/” target=”_blank” rel=”follow”>a -12 decline</a> from <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-ebs-spot-fx-adnv-jumps-30-to-763-billion-in-july/” target=”_blank” rel=”follow”>September’s $76.3
billion</a>.CME Group disclosed
these figures on Tuesday in its November 2022 monthly market statistics shared
with Finance Magnates. According to the
derivative marketplace operator, total volumes on EBS also returned flat
month-over-month (MoM) compared to October. However, on a year-over-year (YoY)
basis, they shot up 7.5%. Furthermore, CME Group
noted that volumes on the EBS Market and the EBS Direct Spot also remained flat last month. However, on a year-over-year basis, the EBS Market posted an 11% growth.“CNH and NDFs on EBS
Market saw strong YoY and MoM performance in November, up 39% and 45% year on
year vs November 2021 respectively, while both saw a 7% increase vs October
2022,” Jeff Ward, Global Head of EBS, explained.Across the industry,
trading venues reported differing outcomes for November. While the forex volume
on the Moscow Exchange (MOEX) <a href=”https://www.financemagnates.com/institutional-forex/moexs-november-fx-demand-remains-flat/”>returned
flat</a> in November, Denmark-headquartered Saxo Bank
reported <a href=”https://www.financemagnates.com/forex/brokers/fx-trading-demand-on-saxo-bank-rises-by-78-in-november/”>a 7.8%
increase</a> in FX trading. On the
contrary, FXSpotStream LLC, a provider of multibank FX aggregation
services for spot FX trading, <a href=”https://www.financemagnates.com/institutional-forex/fxspotstream-sees-27-mom-decline-in-novembers-adv/”>saw a 2.7% MoM decline</a> in November.Check
out the recent Finance Magnates London Summit 2022 session about institutional and retail forex tradingCME Group FX Futures and
OptionsMeanwhile, Paul Houston,
Global Head of FX, CME Group, noted that the group’s FX futures and options
volume “continued the strong year-to-date growth trend” in November. In addition, CME Group
said its listed forex ADV rose 16% YoY in contract terms, with the average open
interest in CME Group listed FX products also rising 14% year-to-date when
compared to the same period in 2021.The Group’s performance in the FX futures and options category is similar to the derivative marketplace operator’s October output when the volume of both derivative instruments shot up by
42% and 20% YoY respectively, up from <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-fx-futures-and-options-hit-all-time-high-volume-in-sept/”>an all-time high</a> posted in
September.Houston explained that the
November performance was driven by “elevated volatility and
increased buy-side customer adoption as exhibited by the growth in positions
held by Asset Manager Large Open Interest Holders (LOIH).” FX LinkMeanwhile, CME Group
said it expanded the currency pairs on the FX Link to nine on November 21st
with the launch of the USD/ZAR trading pair. The CME Group FX Link is a venue
that enables a seamless connection between FX futures contracts and
over-the-counter FX marketplaces.Volume in this venue
rose 40% YoY and 96% year-to-date when compared with November 2021, the Group noted.‘Highest November Volume
on Record’Meanwhile, across all
asset classes, CME Group said it posted its “highest November volume on record”
last month as the ADV of total derivatives contracts increased by 1% to 23.5
million contracts. Last month, the Group posted its <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-ebs-spot-fx-follows-trend-adnv-slumps-12-in-october/”>“highest-ever
October ADV”</a> which came in at 22.7
million contracts with an 11% increase.Additionally, the
Group’s equity index and forex ADV in November rose 23% and 16% to 6.9
million contracts and 928,000 contracts, respectively, among other asset classes.