Cboe FX Markets, the foreign exchange venue for institutions, has posted the trading volumes for the month of November 2020, showing a solid jump in demand.
The spot monthly volume of the FX exchange hit more than $789 billion last month. That was a month-on-month gain of almost 16 percent. That was a solid rebound in the institutional forex demand since the dip in the market after the windfall gain in March.
Only the volumes of February and March in 2020 were higher than the numbers posted for November. The volumes on the exchange in March crossed $1 trillion due to the volatility in the market induced by the impact of the pandemic, a trend seen across the trading industry.
The solid recent figures came in after a massive slide in the institutional forex demand in October. Despite the rebound in the number following the seasonal August lull, the forex demands slipped that month.
Further, the average daily volume of the exchange venue surged to around $37.6 billion with a total of 21 trading days in the month. This figure was a little above $30.9 billion in the previous month.
On a year-on-year basis, the November volumes jumped even higher. Last year, Cboe reported a total volume of $598.3 billion in November, meaning it gained around 31.9 percent in a year.
Will the Rise in Demand Continue?
Cboe is one of the top derivatives market operators in the United States and has various other exchanges under its wing. The demand for other products of the exchange was hampered by the impact of the pandemic and US elections.
The derivatives giant is now aiming for Europe and has already drafted a plan to enter the market in the first half of next year. Meanwhile, Cboe is expanding its portfolio with the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS.
(Photo: Jiefei Liu/MEDILL)