Bats Global Markets Inc. has reported its December metrics, including Hotspot FX volumes on its foreign exchange business. For Hotspot FX, as for many other electronic communications networks (ECN), December 2016 was a slow month.
In contrast to November’s rise in trading volumes in response to intense political activity (with the US election on November 8), December’s fall was the inevitable consequence of the numerous seasonal holidays.
Foreign exchange trading amounts declined by 20 percent month-on-month in December to an average of $24.4 billion in average daily volume (ADV). However, if one takes only the first 19 days of the month into account, disregarding the days of lower liquidity due to the forthcoming festivities, the ADV gets boosted up to $30.2 billion per day – just short of November’s $30.4 billion.
November figures of $30.4 billion in ADV were above $30 billion for the first time since January 2016. In terms of trading metrics, the first month of the year is usually a strong one for Hotspot FX. January of both 2014 and 2015 came close to hitting the $35 billion mark in average trading volume. January 2017 is also expected to hit a similar figure; however, other news may affect the final outcome – the $3.2 billion acquisition of Hotspot FX parent company, Bats Global Markets, by CBOE Holdings, Inc. is expected to close the transaction in the first half of 2017.