FX Platforms: Sept 15 vols down led by EBS -10.9%, and Reuters -8.4%, whilst CME futures show gain of +6%


After the strong surges in volumes in Aug all the major OTC FX platforms saw falls in Sept 15, with EBS down -10.9% at $89.4bn/day, whilst Reuters were down -8.4% at $109bn/day. Only The CME showed a gain, up some 6% at $118bn/day across all FX products.

Among the second ranked platforms, Hotspot recorded a -7.4% drop to $26.2bn/day, whilst Fastmatch was down 14.2% at $7.8bn/day.

Top Tier Platforms

Looking at the table below, we can see that Reuters other products (fwds, and their SEF platform), saw modest gains of 4.5%. In terms of year on year changes, both Reuters and EBS spot volumes are down over -24% compared to last Sept.

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

Reuters – EBS Difference: In terms of the Reuters-EBS differential that we track, in Sep the differential continued to rise, as can be seen from the red line, which has now broken above the downward sloping dotted blue resistance line, which was established in Jan 14, as shown in the green box in the chart below. The spread now needs to keep above a rising dotted black support line if we are to see the differential continue to increase, which would mean an increase in Reuters volumes relative to EBS.

Reuters - EBS difference Charts Sept 15Chart showing the gap between Reuters and EBS spot FX (Reuters-EBS) vols for Sept 2015

Second Tier Platforms

In terms of the second tier, FastMatch fell -14.8% to $7.8bn/day in Sept 15, and some -31.4% lower than in Sept 14, whilst Hotspot saw a more modest fall of -7.4% to $26.2bn/day in Sept 15, down -35.5% compared to Sept 14.

 

2nd tier platform vols Sept 15Table showing Second Tier platforms: Hotspot, Fastmatch vols for Aug 2015

The bottom chart below, shows the gap between Hotspot and Fastmatch. It appears to still be in a downtrend channel which started in May 13 (as shown by the dotted parallel blue lines), reflecting a narrowing of the gap between the platforms.

2nd tier platform Chart vols Sept 15

Chart showing the gap between Hotspot and Fastmatch spot FX (Hotspot-Fastmatch) vols for Sept 2015

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