Platform FX Volumes July14: Double-digit falls for most platforms

Major platforms have reported July FX volumes, with double-digit falls across the board, with Thomson Reuters (TR) spot vols down -14.5%  to $98.8bln/day – a record low, whilst taken in total all Reuters FX products are down -11.4%, although still up some 7.6% on a year ago. Overall spot volumes across all platforms are down between -16% and -21% compared to a year ago.

This drop in FX volumes is also reflected in CLS settlement system which reported a -13.7% drop in trades submitted to their platform at $4,710bln/day down from $5,460bln/day in June, although still up 5.4% on a year ago, whilst the number of trades submitted for clearing is down -20.2% over the year.

From this month, TR has changed their reporting methodology, reporting aggregated volume for Reuters Matching, FXall and the Thomson Reuters SEF. Only splitting out volumes for FX spot and aggregating all other products covering: forwards, swaps, options and non-deliverable forwards traded on those platforms. FXall volumes shown in previous months post here.

Individual platform volumes are as follows:

Reuters total: $343.9bln/day in July, down -11.4% on June, and still 7.6% up compared to Jul 13 level of $320bln/day.

Reuters Other: $245.2bln/day in July, down -10.1% on June but still 23.2% up compared to Jul 13 level of $199bln/day.

Reuters Spot: $98.8bln/day in July (a record low), down -14.5% on June, and down -18.1% compared to Jul 13 level of $121bln/day.

EBS: $70.6bln/day in July, down -8.3% on June, and down -20.9% compared to Jul 13 level of $89bln/day.

Hotspot: $24bln/day in July, down -12.9% on June, and down -16.1% compared to Jul 13 level of $29bln/day.

Individual volume figures for the platforms are summarized below:

FX Platform vol tables Jul 2014

FX Platform Volumes Jul 2014FX volumes for Thomson Reuters, EBS & Hotspot- July 2014

Based on the new methodology from TR, we lose the individual flows seen from FXall, with the following picture of TR FX franchise emerging (chart from TR).

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

“Our total trading volumes rose strongly overall in July – up eight per cent in a year.” He added that the figure represented “a strong follow-up to a spectacular June, which had been bolstered by end-of-quarter hedging activity. The market consensus is that trading is slowing, but our strength is that we are diversified, offering a range of transaction types across FX. (quote taken from post on Forex Magnates website)

Thomson Reuetrs FX Vols Jul 14Thomson Reuters FX volumes for July 2014

Data from CLS Settlement system confirms the slowdown in FX with volume of trades submitted to the system down in July by -13.7% to $4,710bln/day, although still up 5.4% on a year ago.

CLS settlement Platform Volumes July 2014CLS Settlement system Volumes for July 2014

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