FXSpotStream Hits New High, CME Breaks Monthly FX Record

Further evidence of the boost to FX platforms’ business from the volatility in August is provided in the data released by FXSpotStream and CME Group, the former of which established another new peak.

FXSpotStream says its average daily volume (ADV) was $96.8 billion across all FX products in August, beating its previous high-water mark, set in June of this year. This represents a 4.3% increase from July and is up 59.3% year-on-year. Increased spot activity was responsible for the surge, with ADV hitting $73.2 billion, comfortably above the previous high, again in June, of $68.8 billion, and a 14.4% rise from July and up 52.5% year-on-year.

Non-spot activity was lower at FXSpotStream, dropping to $23.6 billion – an 18.1% decline from July – it remains very healthy year-on-year, however, at up 85.1%.

It was also a good month for CME Group’s FX businesses, with the futures and options suite achieving a new high for August and EBS seeing its highest ADV since September 2022.

CME’s FX futures and options traded an average of 1.042 million in August, which The Full FX estimates represents around $96.9 billion in notional terms. This is 19.3% higher than July, and is up 35.7% year-on-year – it is also the highest non-roll month for CME in FX since February 2020. With yen volatility a feature of the month, especially in the opening week, it is notable that CME cites significant year-on-year gains in CHF, AUD, CAD, CNH, MXN and BRL – most of which were associated with the carry trade blow up around the start of August – but does not mention JPY beyond noting that ADV in options rose 670% to an undisclosed volume.

The volatility in JPY did help EBS dramatically, with ADV rising to $71.7 billion per day, a 16.2% increase from July, and up 37.4% year-on-year. This included the busiest day on the platform in the week of July 31-August 6 since March 2020, at $145.4 billion, and a record $41.8 billion all time daily record on EBS Direct.

That first week (including the last day of July) also saw EBS handle $11.3 billion ADV in one-month NDFs on EBS Market, including a daily high of $15.5 billion, however, as per its process, CME does not report monthly ADV in its NDF product suite. Neither is it known, whether peaks on EBS Market and EBS Direct were on the same day.

It was also a notable month for CME’s FX Link, its basis trading platform designed to link OTC and futures liquidity and a key aspect of the coming FX Spot+ service which is being launched early next year. FX Link hit a daily high on Monday 5 August of $13.52 billion, having also breached the 10 yard mark on Friday 2 August. For the month as a whole, FX Link also hit a new high at $5.34 billion per day, just beating the previous high of $5.25 billion in June – this is an 11.3% increase from July and is three times what it was in August 2023.