LSEG FX, 360T Report Final FX Volumes
Posted by Colin Lambert. Last updated: June 16, 2023
Data from LSEG and Deutsche Börse suggests a slowdown in FX swap activity in May, elsewhere, 24 Exchange has reported another strong month on its NDF platform.
LSEG FX has bucked the trend from the earlier group of platforms to report spot FX data with a decline in spot volumes. In May, the group’s FX platforms handled average daily volume (ADV) of $90 billion, the lowest thus far this year and down 6.3% on April. This is in contrast to the other platforms to report, all of whom managed slight gains in activity. Year-on-year, LSEG FX spot volume is also down, by 7.2%, this is on trend with the other venues, only Cboe FX reported a year-on-year increase.
LSEG FX also saw a decline in non-spot activity across its platforms, although given the rise in NDF activity seen by those venues to report data, the fall is likely to be concentrated in FX swaps. Overall non-spot ADV was $334 billion – again this is the lowest thus far in 2023 – an 8% decline from April and down 0.6% year-on-year.
Deutsche Börse’s 360T also saw a decline in overall FX volume in May, ADV was EUR 127.1 billion, down fractionally from EUR 128.1 billion in April. Year-on-year, the platform continues to grow, however, this represents a 13.8% increase from May 2022. Using a fixed exchange rate, in dollar terms, non-spot volume at 360T likely fell by 1.3% from April, but was up 18.5% year-on-year.
In the cleared space, CME Group’s FX Link reported ADV of $1.82 notional at the start of the month, this is down from $2.27 billion in April, but up from the $1.69 billion reported in May 2022.
Earlier this month, 360T and Cboe FX reported gains in NDF volume in May, and this was reinforced by 24 Exchange, which reported its second highest ADV to date at $1.496 billion. This is a 14.7% increase month-on-month and is up almost 150% from May 2022. The platform has been above $1 billion ADV in NDFs every month in 2023.