Institutional FX trading volumes drop 16%+ in April 2021
On average, each of Cboe FX, EuronextFX, FXSpotStream and 360T saw a 16% MoM decline in volumes from March.
On average, each of Cboe FX, EuronextFX, FXSpotStream and 360T saw a 16% MoM decline in volumes from March.
Overall, daily average trading volumes increased by 4.0% at leading eFX platforms, with only EuronextFX showing a slight decline in activity.
Much of the (rise in) activity is attributable to the last few days of February, when currency volatility brought the GBPUSD to above 1.40.
Trading volumes were especially strong in the last few days of January, with the retail equities trading frenzy spilling over to currencies.
Of all the major FX ECNs covered, only Integral posted an increase in volumes during December, and that was a paltry 1.5%.
The volume driver was increased currency volatility thanks mainly to the continued erosion during the month of the value of the US Dollar.
Following a fairly strong September, institutional FX traders returned to the sidelines in October ahead of what may be a volatile November.
Overall, volumes were up an average of 8% at leading institutional FX platforms, with Cboe FX and EuronextFX showing double digit gains.
What appeared to be a quiet end-of-summer trading season in institutional FX during August heated up over the last few trading sessions.
After a really crazy year for the markets, the usual summer slowdown seems to be here, at least in institutional FX trading.