BofE FX Survey data: London FX volumes down -21% in Oct 15 (SDP volume+6%, MDP volume -13%)


The Bank of England today released their latest semi-annual FX turnover survey results for Oct 2015.

Highlights on London FX volumes for Oct 2015

  • Total FX volume  of $2,148bn/day, down -13.4% compared to Apr 15, and down -21% compared to a year earlier, and the lowest volumes since Oct 12.
  • All product volume  fell:
    • Spot -24% at $737bn/day (and down -34% on year earlier, to lowest since Oct 12)
    • FX Options – 24%
    • NDFs -16% and FWD -13% although FX Swaps were only -2%
  • Turnover fell in most currency pairs:
    • EUR/USD down -17% to $640bn/day
    • Only three in top 22 currency pairs rose:
      • USD/AUD +8%
      • USD/CNY + 3%
      • USD/KRW +11%.

Continue reading

Reuters announce FX Options vols increased 166% in 2015 (seems far higher than official BofE survey data suggests)


A Reuters press release on FX Options caught my eye today. The announcement states that:

Thomson Reuters FX dealer-to-client venue saw a surge in options trading volumes of 166 percent in 2015 compared with the previous year. In particular the fourth quarter of 2015 saw record-high monthly, weekly and daily volumes with over 36 global and local active options price-makers and more than 225 active options price-takers now on Thomson Reuters FX platform.

Thomson Reuters FX Trading provides both relationship trading (bank-to-client) and bi-lateral trading (interbank) for vanilla and exotic FX options. In recent months the company has introduced electronic FX options callouts to streamline how banks can access options liquidity in the interbank market. By providing one single point of access to options liquidity via electronic callouts or via Thomson Reuters FXall dealer-to-client request-for-quote service, FX Trading helps market participants to efficiently manage their trading risk.

According to Phil Weisberg, Global Head of FX at Reuters: Continue reading

CLS FX Settlement: Value of transactions up 1.4% in Dec 15, end year at lowest levels since Aug 13


The CLS FX settlement system has reported a slight increase of +1.4% in the ADV of FX trades settled through their platform in Dec 15, taking volumes back up to $4.47trillion/day (up from $4.41trillion/day in Nov 15). This is the lowest on the platform since Aug 2013.

In terms of number of transactions settled, these were almost unchanged at 961,698 in Dec 15, although they are now at their lowest level since Jul 14.

Details from the platform and charts are as follows:

CLS value of instructions submitted: $4.47 trillion/day in Dec 15, up +1.4% on the $4.41 trillion/day in Nov 15, although down -8.2% compared to Dec 14.

CLS number of instructions submitted: 961,698/day in Dec 15, down -0.3% on the 964,810 in Nov 15, and down -21.4% on Dec 14 level of 1,223,109.

Average Trade size: $4.65mln in Dec 15, up +1.7% on the $4.57mln in Nov 15 and up +16.7% compared to the $3.98mln in Dec 14.

CLS Clearing charts Dec 15

CLS Data: Value and number of transactions submitted to CLS in Dec 2015

Note: CLS reports both sides of an FX transaction. To adjust the average daily value data to equate to the same reporting convention used by the Bank for International Settlements and the semi-annual foreign exchange committee market reports, the gross values should be divided by two.

 

FX Platforms Dec 15: Reuters and EBS almost unchanged in Dec 15, whilst The CME showed strong 24% gain.


The top-tier FX platforms have now released their Dec 15 FX vols.

In terms of Spot FX vols, Reuters and EBS are barely changed, with Reuters +1.1% at $91bn/day, whilst EBS -0.9% at $74.8bn/day. However, in terms of other products, Reuters showed an +8.8% rise in other product vols, including NDFs and swaps (on their SEF) to $246bn/day.

However, The CME Group, had a great end of year, with a strong +24.1% gain in all FX product vols in Dec to stand at $110.6bn/day ($89bn/day in Nov 15). Although given that it’s Dec, we can’t really read too much into year-end figures.

1st tier platform vols Dec 15Table showing Top Tier platforms: Reuters, EBS and CME Futures vols for Dec 2015

If we look closer at Continue reading

Interesting Celent report on future of Spot FX trading technology & platforms


Just finished reviewing an interesting Celent report by Brad Bailey, on evolving spot FX market structure and technology trends in light of changes in global regulation, a blurring of traditional liquidity pools and the ongoing competitive landscape.

Brad touches on a number of the themes we have covered here over the year, but it’s always good to have someone else’s perspective on them.

The themes covered being: Continue reading

CLS FX Settlement: Value of transactions up modest 3.9% in Sept 15 (launches new FX fwds compression service)


The CLS FX settlement system has reported a modest +3.9% rise in the average daily value of FX trades settled through their platform in Sept 15, taking volumes back up to $4.8trillion/day (up from $4.6trillion/day in Aug 15), and the highest level since Jun 15, although still way below the high of the year of $5.3trillion/day in Jan 15.

The slight monthly rise, is slightly out of line with the modest falls in spot volumes reported by the major FX platforms earlier this month, which saw falls ranging from -8.4% for Reuters to -10.9% for EBS.

Details from the platform and charts are as follows: Continue reading

Inviting expert guest contributors to SingleDealerPlatforms blog


Dear Readers,

The SingleDealerPlatforms.org blog is nearly six years old. During that time, it has built a loyal and focused following, by providing insight into the dealer-to-client e-trading space. Exploring new trends and emerging opportunities, and looking at the business, technical and regulatory challenges facing participants.

Given the focus, it’s not surprising the blog is popular within banks. Actually, over Continue reading

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