CME, EBS FX Volumes Mixed in May
Posted by Colin Lambert. Last updated: June 7, 2023
As was the case with the first group of platforms to report FX turnover, the news was mixed for CME Group and EBS in May, with both showing a month-on-month increase, but a year-on-year decline.
CME says turnover in its FX futures and options was 825,000 contracts per day, The Full FX estimates this is $80.7 billion in notional terms. This represents an 8.8% increase from April, but is down 5.6% year-on-year. Volume on CME’s FX Link was $1.82 billion, a 19.8% decline from April, but up 7.7% year-on-year.
The CME Group Volatility Index (CVOL) shows that FX volatility expectations in May continued to trend down from the historically elevated levels seen in the second half of 2022. The combined G5 CVOL index reached a low of 7.08 on 16 May, the lowest level since February 2022.
Meanwhile, EBS reports average daily volume of $53.4 billion, a slight increase (0.1%) from April, but down 17.2% year-on-year. This represents the platform’s second lowest ADV since December 2021. In better news for the platform, EBS says it saw continued adoption of EBS Direct forwards, with record ADV in May. It does not give specific notional value, but says volume was up 75% year-on-year, driven by “a stronger mix of clients trading larger tickets further out the curve”.