How Do the FX Platforms Compare to the FX Turnover Data?

While in recent years the FX platforms have occasionally struggled to match the pace of growth seen in FX markets generally, the same was not the case in April 2024, with most actually out-pacing the growth in spot volumes reported across those jurisdictions to report.

With the caveat that at the time of writing, one week after the surveys were published Japan is yet to report its FX volumes, only one venue operator, LSEG, was significantly short of the 18.5% year-on-year growth. The lack of data from the Tokyo FX Committee, which is bringing a whole new meaning to the phrase “ex-Japan”, could be significant given how USD/JPY hit a 34-year high and was met with likely Bank of Japan intervention on the last day of April.

That aside, however, it was good news all round for the platforms, most of whom grew volumes faster than the wider market. Even EBS, which has struggled the most in recent years to keep pace, saw a 15.7% increase in activity in the year to April 2024, however this was also likely to have been influenced by USD/JPY activity, the platform seeing its busiest day in the pair since 2016 as the BoJ acted.

As noted, LSEG’s FX platforms, Matching and FXall, saw a smaller pace of gain, rising only 4.2% year-on-year in spot, something that reflects the steady nature of the group’s FX volumes. The only other platform to fall short, albeit slightly, was 360T, which saw volumes rise by 17.3%, it may be significant that 360T and FXall, which makes up a larger part of LSEG spot volumes than Matching, are both relationship-based venues, whereas the surge in activity in April was likely to have been from speculative players.

Away from those venues, CboeFX saw its activity rise faster than the broader market, spot volumes up 25.9% year-on-year, while Euronext FX outstripped even that at +45.7%. FXSpotStream also grew strongly, spot volumes rising 48.9% year-on-year, compared to the broader gain.

Away from spot, CME saw a 9.2% gain in FX futures and options volumes, while SGX saw its futures activity double. FX swaps volumes rose 16.4% across the surveys (ex-Japan), for comparison, LSEG’s non-spot volumes were barely changed, rising just $2 billion per day to $365 billion, while 360T’s non-spot volumes rose 9.5% to around $116 billion per day. CLS saw spot volumes rose 22.4%, while FX swaps activity on the settlement service provider rose 7.7%.