FX Platform Volumes Bounce Back Strongly in August
Posted by Colin Lambert. Last updated: September 3, 2024
The market upheaval seen in August has helped propel average daily volumes on the first group of FX platforms to report results to recent highs across both spot and NDF products, with two new highs reported in the latter.
After hitting its second highest ever ADV in spot FX in July, Deutsche Börse’s 360T managed to slightly improve in August, reporting $31 billion per day. This is up 0.6% from July, but is up 11.6% year-on-year – March 2020 and the onset of the pandemic remains the high-water mark for the platform (and many others). Slightly more trading was done through the Tokyo matching engine at 360T in August (16% from 15% in July), this came at the expense of New York (54% from 55%), with London unchanged.
Notably, with Japan the focus of so much attention during the early part of the month as the carry trade blew up, 360T saw less USD/JPY volume at 14% of flow, compared to 17% in July. That said, another focus of the mayhem, China, saw 360T report a joint-highest percentage of volume in USD/CNH at 9%.
Elsewhere, Euronext FX also hit is second highest FX ADV (again after March 2020), at $29 billion per day. This is up 14.6% from July, which was a dip below recent averages for the platform, and is up 28.9% year-on-year.
Cboe FX just failed to match its recent peak of $50 billion per day, set in April, reporting $49.9 billion ADV in August. This makes it the platform’s third busiest month, behind April and March 2020, but is up 11.9% from July and up 21.4% year-on-year. Cboe FX saw $15 billion of firm ADV in August, unchanged from July.
Records Set in NDFs
Meanwhile, two of the three platforms to report NDF volumes hit a new peak in August. Fresh from breaking the $3 billion per day barrier in April, 24 Exchange, has now breached the $4 billion threshold for the first time, reporting ADV of $4.14 billion. This is up 33.6% from July, and is up 112.3% year-on-year.
Cboe FX SEF also hit a new high at $1.45 billion in August – a 41.6% rise from July, it is also up 34.8% on a year-on-year basis. Finally, while it was still a strong month for 360T’s NDF business at $1.55 billion, this is a slight dip from July’s $1.57 billion, but is up 11.6% year-on-year.
