Institutional Spot FX Volumes Declined MoM in October

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Institutional Spot FX Volumes Declined MoM in October

<p>Two institutional spot <a href="https://www.financemagnates.com/terms/f/forex-trading/" target="_blank" id="258a569f-bf49-4a61-a1b4-bc352d76141f_1" class="terms__main-term">forex trading</a> venues, Cboe FX and Deutsche Börse's 360T, have published trading metrics for October, reporting a monthly slump with more robust numbers year-over-year.</p><p><a href="https://www.financemagnates.com/tag/cboe-fx/" target="_blank" rel="nofollow">Cboe FX</a> reported a total monthly volume of more than $896 billion for the month, along with an average daily volume (ADV) of $42.6 billion. These figures were down by 11.1 percent and almost 7 percent, respectively from the previous month.</p><p>October had 21 trading days compared to 22 in September.</p><p>However, Cboe's total volume and ADV came in more robust year-over-year. It ended last year's October with a total monthly volume of $717.5 billion and ADV of $34.1 billion, meaning these figures improved by almost 25 percent and 24.9 percent, respectively.</p><p>Other Platforms</p><p>Another spot FX trading venue, <a href="https://www.financemagnates.com/tag/360t/" target="_blank">360T</a>, which dominates Europe, reported a similar trend in trading activities. The platform's total trading volume for October came in at $499.3 billion, with an ADV of $23.7 billion.</p><p>360T witnessed a monthly ADV decline of over 13 percent in October, whereas the figure strengthened by 7.2 percent from the same month of the previous year.</p><p>In addition, the Deutsche Börse-owned platform offers <a href="https://www.financemagnates.com/terms/f/forex/" target="_blank" id="6faa6714-7f7b-4d23-b1c5-c0d40807d613_2" class="terms__secondary-term">forex</a> <a href="https://www.financemagnates.com/thought-leadership/ndfs-and-the-geopolitical-environment-that-drives-them/" target="_blank">non-deliverable forwards</a> (NDFs) to institutional traders, which is becoming a popular trading instrument. The total trading volume with FX NDFs for the month came in to be $25.7 billion, which is down from last month's $324 billion. The ADV for the month declined by 17 percent.</p><p>Like spot FX, the demand for NDFs also jumped yearly by more than 92 percent.</p><p>Trading demand in October on Japanese forex derivatives trading venue, Click365, remained almost flat month-over-month with a marginal increase of only 0.4 percent. However, year-over-year demand increased by 46.9 percent as more than 3.6 million FX futures contracts changed hands last month.</p><p>Meanwhile, the global forex trading market touched a <a href="https://www.financemagnates.com/institutional-forex/fx-trading-has-become-a-75-trillion-adv-market-london-losing-steam/" target="_blank">daily ADV of $7.5 trillion</a> last April, according to the Bank for International Settlements (BIS).</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Institutional Spot FX Volumes Declined MoM in October