EBS & Hotspot FX vols Oct 2014: EBS up 10pct whilst Hotspot down 10pct!

EBS the FX platform owned by ICAP saw a strong performance in Oct 2014, with daily volumes rising 10.2pct to $129.9bln/day, the highest volumes since Feb 13 as volatility returns to the FX markets. Although at same time Hotspot (whose owners Knight Capital Group KCG are looking to sell the platform), saw Oct 14 daily volumes drop by 10.3pct to $34.3bln/day.

Actual figures for platforms are as follows:

EBS $129.9bn/day in Oct14, up +10.2% on Sept, and up +68.7% compared to Oct13 level of $77bln/day

Hotspot: $33.3bn/day in Oct14t, down -10.3% on Sept, and up +15.5% compared to Oct13 level of $29.7bln/day

Volatility has surged in the markets, particularly evident on Friday 31 October, when the Bank of Japan surprised the market by announcing it had expanded its quantitative easing program. According to EBS, their daily volumes for Friday 31 Oct rocketed to $250bln, the highest in some three years. The chart below shows EBS Direct volumes, although not officially published, we have a few data points to help show the positive trend.

EBS & Hotspot Oct 14

EBS Daily Volumes

Commenting on the continued improvement in volumes, Darryl Hooker, Head of EBS Market, said:

“During times of high volatility the market recognises that as the primary market for deep and genuine liquidity, EBS Market will give greater certainty of execution. We were delighted to have welcomed a material increase in traders on the platform in the last couple of months. Given the superior experience in terms of access to liquidity and execution on EBS Market, we have seen a flow of new customers signing up and new interest in our platform.”

It would be interesting to see the breakdown of volumes for EBS Direct over the same period, and see whether the relationship platform experienced similar surges in volumes.

EBS Oct 14 Vol

EBS Direct as Pct of total EBS volumes

Thomson Reuters and CLS settlement platform will report their volumes next week.

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