Trading activities in spot
foreign exchange among institutional investors weakened last month across
regions, data from Cboe FX, Deutsche Börse’s 360T, FXSpotStream and Click 365,
shows. The decline comes after major trading venues reported stronger
output earlier in March. In January, the institutional
spot FX demand recovered from the holiday lows in December only to retreat in February. By March, the volumes picked up again; although
new data shows the volumes shrunk at the end of April. Demand Drops across RegionsCboe FX, an American
spot FX trading platform handled 29% less volume in April as total volumes
shrank to $793 billion, which is down from $1.1 trillion in March and was its second best month in its history. Additionally, the average
daily volume (ADV) handled by the platform decreased 18% from $48.4
billion in March to $39.7 billion last month. In February, Cboe FX’s total volume stood at $837.9 billion. However, by the end of the first quarter in March, Cboe FX set new volume records, including spot FX ADV of $43.9 billion.Furthermore, FXSpotStream, a New
Jersey-based provider of multibank price streaming services for FX spot and
swaps, among other instruments, reported a decline in its volume. Total volumes
generated by the aggregation services provider slumped 28% month-over-month
(MoM) to $1.1 trillion, which is down from $1.5 trillion in March. In February, the volumes came in at approximately $1.3 trillion.Similarly,
FXSpotStream’s ADV decreased 17.2%% MoM and 9.7% YoY to $55.3 billion, which
is down from approximately $67 billion last month. However, April had 20
trading days, unlike March with 23 trading days.At 360T, one of Europe’s biggest
institutional FX trading platforms, daily spot volumes in April added up to
$507 billion, which is down 21% from the $642 billion generated at the end of
March. Moreover, the April total volume is lower than the $530.9 billion generated
by the trading platform in February.In Asia, the total volume of FX daily
futures contracts traded on Click 365, an online trading platform operated by
the Tokyo Financial Exchange (TFX), dropped 43.3% MoM and 41.7% YoY to
1,897,088. This is the biggest fall in volumes compared to declines in trading activities across other regions. The average daily volume during the month came in at 94,854
contracts. Click 365 allows market
participants to trade futures contracts on major currencies, including the US
dollar, euro, British pound, and Australian dollar. The platform was launched
in 2005 by TFX as the world’s first exchange-traded FX daily futures contracts
platform.Revolut in Brazil; WeChat’s digital yuan expansion; read today’s news nuggets.
This article was written by Solomon Oladipupo at www.financemagnates.com.
