CME Group’s EBS Spot FX ADNV Jumps 30% to $76.3 Billion in September

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CME Group's EBS Spot FX ADNV Jumps 30% to $76.3 Billion in September

<p>    The average daily notional value (ADNV) of spot forex traded on the Chicago Mercantile Exchange (CME) Group's Electronic Broking Services (EBS) jumped by 30% to $76.3 billion in September 2022. </p><p class="MsoNormal text-align-justify">The ADNV also rose by 31% year-on-year (YoY) last month from the $58.2 billion recorded in September 2021.</p><p class="MsoNormal text-align-justify">These figures are contained in details shared with Finance Magnates and <a href="https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcmegroupinc.gcs-web.com%2Fmonthly-volume&data=05%7C01%7Csolomon%40financemagnates.com%7Ca2e6fe3cac6546b29a2b08daa5fbf21f%7C5a54ff246b6145da90d5fe83fb5f64a5%7C0%7C1%7C638004798937305320%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000%7C%7C%7C&sdata=dxc0vdlk3cpJqxxFJPnvPLuhJ9b7ehFtOix0a1%2BmMOE%3D&reserved=0">the September 2022 market data </a> released by CME Group on Tuesday.</p><p class="MsoNormal text-align-justify">The <a href="https://www.financemagnates.com/tag/ebs-volumes/" target="_blank">EBS</a> is a wholesale electronic trading platform for forex trading with market-making banks and is owned by <a href="https://www.financemagnates.com/tag/cme-group/" target="_blank">the CME Group</a>.</p><p class="MsoNormal text-align-justify">'Strong Overall Performance'</p><p class="MsoNormal text-align-justify">According to Jeff Ward, the Global Head of EBS, forex spot average daily volume (ADV) on the EBS Market G3--which accounts for forex trades in US dollar, Japanese yen and euro--shot up by 34% month-on-month (MoM) and 49% YoY.</p><p class="MsoNormal text-align-justify">Jeff pointed out that the USD/JPY pair was particularly strong during the past month as the pair marked its largest day since November 2016 on the EBS Market on September 2022.</p><p class="MsoNormal text-align-justify">"Nearly five times the average daily volume for USD / JPY for 2022 was transacted including US$18.5 billion (single count) vs. the Japanese Yen in the single hour between 8am and 9am GMT," Ward said.</p><p class="MsoNormal text-align-justify">Sharing further details, EBS said forex spot in Chinese yuan (CNH) on <a href="https://www.financemagnates.com/tag/ebs-live-ultra/" target="_blank">EBS Market</a> rose 14% MoM and 22% YoY.</p><p class="MsoNormal text-align-justify">It added that trading in CNH surged in the final week of September recording "double of its year-to-date ADV levels amid heightened <a href="https://www.financemagnates.com/terms/v/volatility/" target="_blank" id="7fd330d9-8855-4c31-9770-cb52b328c117_1" class="terms__main-term">volatility</a>."</p><p class="MsoNormal text-align-justify">Furthermore, the wholesale electronic trading platform disclosed that the EBS Market non-deliverable forwards rose 29% and 41% last month and from the same period last year, respectively.</p><p class="MsoNormal text-align-justify">The EBS Direct spot also increased 21% MoM and 18% from September 2021, the platform said.</p><p class="MsoNormal text-align-justify">"EBS Direct Forwards set a record month and two new record days up 55% year-on-year versus September 2021 due to increased client adoption and a more active rate environment," Ward said.</p><p class="MsoNormal">Speaking on the overall EBS market, Ward noted that the wholesale electronic trading platform recorded "strong overall performance in September versus both prior month and September 2021."</p><p class="MsoNormal text-align-justify">The EBS exectuvie believes this is a continued reflection of "the value and role of the primary market central limit order book in managing risk in more volatile and uncertain market conditions."</p><p class="MsoNormal text-align-justify">eFix Matching Service</p><p class="MsoNormal text-align-justify">Meanwhile, EBS said volumes transacted through its eFix Matching Service recorded the fifth largest monthly volume since <a href="https://www.financemagnates.com/institutional-forex/brokerage/icaps-ebs-efix-matching-service-takes-fx-markets-utility-function/" target="_blank">its launch in 2014</a>. </p><p class="MsoNormal text-align-justify">Volume on the central electronic market utility which helps to cushion benchmark fixing risk increased 8% from the performance recorded in September 2021.</p><p class="MsoNormal text-align-justify">Furthermore, EBS said end-of-month trading pushed eFix to its fifth best day since launch at $18.5, adding that the utility's top five days were recorded this year.</p><p class="MsoNormal text-align-justify">Ward believes these records demonstrate "the criticality of eFix in the management of fixing risk."</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.

Source: CME Group's EBS Spot FX ADNV Jumps 30% to $76.3 Billion in September