Following weak Sept FX vols, the major OTC FX platforms reported further falls in October, with Reuters down -4.6% at $104bn/day, EBS down -6.5% at $83.6bn/day, whilst The CME futures exchange saw vols for all FX products collapse, down -22% at $92bn/day.
The only bright spot coming from second tier platform Fastmatch, which recorded a +15.4% gain to $9bn/day.
In terms of year on year changes, all platforms are now showing large falls, with Reuters Spot down -27.8% and EBS down -29.1% and CME down -36% compared to last Oct.
Table showing Top Tier platforms: Reuters, EBS and CME Futures vols for Oct 2015
Reuters – EBS Difference: Looking at the differential between Reuters-EBS that we track, in Oct 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.
Chart showing the gap between Reuters and EBS spot FX (Reuters-EBS) vols for Oct 2015
Elsewhere, ThomsonReuters announces new integrated FX trading desktop.
Second Tier Platforms
In terms of the second tier, FastMatch volumes rose +15.4% to $9bn/day in Oct 15, although still-28.6% lower than in Oct 14, whilst Hotspot vols were down -8.8% to$23.9bn/day in Oct 15, down -30.3% compared to Oct 14.
Table showing Second Tier platforms: Hotspot, Fastmatch vols for Oct 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 and could break below the trend lines shown in the green box, which would indicate a further weakening of HotSpot relative to FastMatch.
Chart showing the gap between Hotspot and Fastmatch spot FX (Hotspot-Fastmatch) vols for Oct 2015