The first group of institutional FX platforms to report their monthly volumes indicate that November was a busier month all round, with FXSpotStream setting its third-highest ADV on record.
Total trading volumes on FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, ticked higher last month, helped by a rise in politically driven volatility. Specifically, November’s figure came in at $934 billion, which is up 10 percent from $855 billion in the previous month and jumped by over 42 percent on a yearly basis.
November’s average daily volume (ADV) of $44.5 billion is the highest monthly reading for this metric since it hit an all-time high at $62.3 billion back in March. Additionally, this figure is higher by 14.5 percent from $39.8 billion in October 2020 and increased 44 percent year-over-year when compared with $30.9 billion in November 2019.
November 2020 saw a total of 21 trading days, compared with 22 days in the month prior.
Activity on FXSpotStream’s trading venue has been consolidating over the last few months, namely since the aggregator service of LiquidityMatch LLC reported a record $1.37 trillion in total volumes for March.
The rise in FX volumes will be welcomed by both retail and professional platforms, including major exchanges, that have struggled with calm financial markets squeezing their profits in recent years.
Other institutional FX platforms including Cboe FX, CLS, and Thomson Reuters are expected to report a big rise in volumes for last month as volatility picked up and the secular trend of rising FX volumes comes into play again.
FXSpotStream’s offering is a client-to-bank platform, with each liquidity taker required to create individual credit relationships with participating banks. This differs from other multi-dealer platforms, such as FX ECNs like Hotspot and EBS Markets that operate with centralized order book systems for their participants.