FX Platforms Oct 15 vols: Major platforms vols slightly lower, CME vols crash, whilst Fastmatch shines with double digit gains


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.

FX Vols Oct 15

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.

Thomson Reuters Average Daily FX Volumes ($ Billions)

Reuters-EBS differential Oct 15Chart 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.

Second tier FX platforms Oct 15

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.Second tier FX platforms Charts Oct 15

 

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

 

6 Responses

  1. Hi Paul, looks like a typo in the paragraph above, which has Hotspot as gaining 15.4% instead of Fastmatch.

    “The only bright spot coming from second tier platform Hotspot, which recorded a +15.4% gain to $14.9bn/day.”

    However, later on:

    “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.”

  2. Hi Alexis,

    Welcome to the blog and well spotted!

    I have made the changes, thanks.

    Paul

  3. Hi Paul,

    No worries. I think the number might need changing also as it currently says:

    “The only bright spot coming from second tier platform Fastmatch, which recorded a +15.4% gain to $14.9bn/day.”

    I think the 14.9 should be 9?

  4. Alexis, third time lucky, now changed to $9bln. The 14.9 was the difference between Hotspot and fastmatch.

    Paul

  5. Thanks Paul, great website BTW.

  6. Alexis,

    That’s very kind of you to say so,

    thanks, Paul

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