Top tier FX Platforms Mar 16: Reported weak results, EBS volumes sharply lower -18.4%


In terms of Spot FX, all the major platforms delivered lower results in Mar  16.

  • EBS -18.4% to $83.7bn/day ($102.6bn/day in Feb 16), down -26.9% compared to Mar 15 level of $114.5bn/day
  • Reuters spot -6.3% to $104bn/day ($111bn/day in Feb 16), down -21.2% compared to Mar 15 of $132bn/day
  • The CME -4.2% to $114bn/day ($119bn/day in Feb 16), down -16.1% compared to Mar 15 level of $136bn/day

In terms of other products, Reuters showed a rise of Continue reading

FX 2nd tier platform vols Mar16: Volumes down led by Hotspot (-19%), and FastMatch (-9%)


Second tier FX volumes reported weak volumes figures in Mar 16, with Hotspot  showing a -19% fall to $26.4bn/day, whilst FastMatch reported a smaller decline of -9% to $10.1bn/day.

2nd tier platform vols Mar 16

Table showing Second Tier platforms: Hotspot, Fastmatch vols for Mar 16

Meanwhile the only top-tier platform to report is The CME group, which showed Mar 16 volumes for The CME of $114bn/day, down -4.2%. Full analysis of the top-tier platforms next week, by which time Reuters and EBS will also report their volumes as well.

The charts below show the volumes comparisons between Hotspot and FastMatch. The bottom chart shows the gap between Hotspot and FastMatch. The Mar decline in Hotspot vols has caused the difference between the two platforms volumes to drop back from the top of the downward sloping channel.

2nd tier platform charts Mar 16
Chart showing the gap between Hotspot and Fastmatch spot FX (Hotspot-FastMatch) vols for Mar 16

The Capital Markets’ Industrial Revolution


Interesting comparison from GreySpark in their latest research report. Comparing the digital transformation of investment banking to the automation of manufacturing processes in industries such as motor and aircraft manufacturers.

Their report draws analogies, between investment banking, and the motor and aircraft industries, which also experienced heavy regulatory burden, regular government interference, ever evolving demand patterns, regular bouts of over-capacity and a critical requirement to pool resources in order to innovate.

In their opinion, banks will reinvent their operating models on three pillars:

  1. A fully-automated manufacturing plant for the creation, assembly and packaging of financial products and services.
  2. A multi-channel distribution franchise that provides a consistent user experience for all interactions between the bank and its clients.
  3. Data managed as an asset across the entire supply chain.

The adoption of this new operating model has significant implications:

  • Investment banks’ supply and value chains will invariably extend beyond the enterprise and incorporate suppliers, partners, market infrastructure and shared utilities.
  • The number of joint-ventures and strategic alliances between complementary institutions will multiply as banks focus on their core expertise, client franchises and geographies.
  • As value creation will be effectively distributed across functions, the manner in which it is accounted for will also change – determining where key decisions are made and how individual contributions are rewarded.

Link to report here (behind paywall):

FX Platforms Feb 16: Top tier FX platforms reported drop in volumes, led by Reuters spot down -10%


In terms of Spot FX, all the major platforms delivered lower results in Feb 16.

  • EBS -1.2% to $102.6bn/day ($103.8bn/day in Jan 16), up +9% compared to Feb 15 level at $94.1bn/day
  • Reuters spot -9.8% to $111bn/day ($123bn/day in Jan 16), -2.6% compared to Feb 15 at $114bn/day
  • The CME -1.7% to $119bn/day ($121bn/day in Jan 16), up +26.1% compared to Feb 15 level of $94bn/day

In terms of other products, Continue reading

Deloitte 2016 Global FX survey


An interesting FX survey from Deloitte provides insight into the challenges corporations encounter when managing currency risk and possible causes (and solutions) for these challenges, as well as FX risk management structures, strategies, and processes adopted by companies across the globe.

Key findings are summarized below:

  • Treasury challenges: Lack of visibility into FX exposures and reliable forecasts and the manual nature of exposure quantification is a challenge for nearly 60 percent of respondents.
  • The board agenda: The survey suggests that boards do not always receive sufficient information in relation to FX risk. Executive management could challenge its
    treasurers more in order to better understand the impact of FX risk hedging strategies on profit margins.
  • Treasury structures: FX risk is predominantly managed via a central structure with 93 percent of respondents using a centralized treasury or in-house bank model, sometimes complemented by regional treasury centers.

Continue reading

FX 2nd tier platform vols Feb16: Hotspot (+26.8%), whilst Fastmatch (-5.9%)


Second tier FX volumes showed gains in Feb 16, led by Hotspot which reported a strong +26.8% rise to $32.6bn/day, whilst FastMatch reported a most -5.9% decline.

2nd tier platform vols Feb 16

Table showing Second Tier platforms: Hotspot, Fastmatch vols for Feb 16

Meanwhile two of the first tier platforms have reported their Feb volumes, with EBS -1.2% at $102.6bn/day and The CME group down -1.7% at $119bn/day. Full analysis next week when Reuters will also report their volumes as well. Continue reading

CLS FX Settlement Jan 16: value of transactions up 8.3% to $4.84trillion/day in Jan 16 (highest level since Jun 15)


The CLS FX settlement system has reported a healthy +8.3% increase in the ADV of FX trades settled through their platform in Jan 16, taking volumes back up to $4.84trillion/day (up from $4.47trillion/day in Dec 15). This is the highest level since Jun 15, although still down -8.9% on Jan 15.

In terms of number of transactions settled, these showed a strong gain, up +30% to 1,249,226 in Jan 16, although still down –12%  on Jan 15 level of 1,419,369.

Details from the platform and charts are as follows: Continue reading