FX buying and selling volumes slip in September after robust August numbers

Spot buying and selling volumes on non-bank FX buying and selling venues fell in September in contrast with the unseasonably robust buying and selling exercise seen in August, in accordance with platforms that publish their month-to-month volumes.

Many venues additionally noticed September volumes drop decrease than September 2018, as volatility in FX markets remained low.

Month-on-month common each day volumes dropped eight.5% throughout all platforms in September. Integral was the one venue to expertise a rise in buying and selling exercise throughout the month, as volumes rose to $37.three billion in September, an increase of eight.1% in contrast with August.

In distinction, Euronext FX noticed the most important lower amongst its friends in September, with common each day volumes falling to $19.1 billion – a drop of 14.three%. In an atmosphere of extra restrained buying and selling exercise, each day volumes in September surpassed the $25 billion mark on the platform solely on two events, whereas in August there have been eight such days above that degree and even one when buying and selling nudged over $30 billion.

On a yearly foundation, the outcomes had been extra blended. Half the reporting buying and selling venues registered September buying and selling volumes larger than the identical month in 2018. FXSpotStream skilled the most important year-on-year beneficial properties, as buying and selling on the disclosed platform stood at $37.three billion in September 2019 – a rise of 16.9% on the $31.9 billion in September 2018.

The most important yearly drop in spot buying and selling was seen on Refinitiv’s buying and selling platforms, the place volumes fell 15.three% to $83 billion in September in contrast with $98 billion a 12 months in the past.

In the meantime, buying and selling exercise on exchanges was blended, as CME noticed the variety of futures contracts traded in September improve to 1.1 million – a 22% rise on the 821,000 contracts traded in August – whereas the Singapore Alternate noticed total contract numbers shrink to 2.2 million – a drop of 13% – between these two months.

Conversely, CME volumes fell on a yearly foundation – by –6.four% – whereas buying and selling exercise on SGX elevated 39% between September 2018 and September 2019. Offshore renminbi contracts versus the greenback had been notably energetic on SGX, with USD/CNH futures contracts rising 74%.

SGX attributed the expansion in offshore renminbi quantity to indicators of progress in US-China commerce negotiations, following the deferment of some tariffs. It additionally stated institutional demand to danger handle portfolio publicity to the Indian rupee, one other key rising Asia forex, drove a 23% year-on-year achieve in INR/USD futures quantity to 1.41 million contracts throughout the month.

The change reported that Q3 combination FX buying and selling volumes on SGX stood at a document excessive of $383 billion.

Based on the most recent Financial institution for Worldwide Settlements triennial FX survey, the common each day quantity of spot transactions elevated to $1.98 trillion in 2019 – a rise of 20% on the $1.65 trillion traded in 2016.

Whereas the rise in spot trades was lower than the 30% rise in total FX transactions throughout that interval, the buying and selling of futures and choices on exchanges made much more modest beneficial properties. Based on the survey, on-exchange FX trades accounted for a each day common of $127 billion in 2019 – simply 10% greater than in 2016.


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