Cboe FX turnover hits four-year high in April

The busiest April on global markets in many years is raising hopes among institutional venues that the second quarter will spark a long-awaited rebound in trading metrics.

Volatility on foreign exchange markets has spiked after comments from Federal Reserve Chairman Jerome Powell about a higher-for-longer approach to interest rates sent the greenback rising and volumes skyrocketing.

Cboe’s institutional spot FX platform today disclosed a total trading volume of $1.1 trillion, up 14 percent on a month-over-month basis from $966 billion in March‎. Additionally, this figure was higher by 39 percent year-over-year when weighed against $793 billion in April 2023.

The exchange’s institutional FX trading venue saw its average daily trading volume amounting to $50 billion in April 2024, up 8.7 percent month-over-month from $46 billion the previous month. The figure is the highest since March 2020.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated stronger performance, rising by 26 percent when weighed against $39.6 billion a year earlier.‎

Cboe’s foreign exchange franchise was established as the first electronic communication network (ECN) for the institutional FX market and has maintained a leading position for over twenty years. The platform is distinguished by its deep liquidity, anonymous trading, and innovative technology, catering primarily to institutional clients.

Cboe Spot enables various institutional entities such as banks, hedge funds, and high-frequency traders to engage in currency trading. The acquisition of Hotspot FX by Cboe Global Markets brought this service into the Cboe family, where it has been integrated with Cboe’s suite of trading offerings.

The platform offers a diverse suite of products across multiple platforms, including ECN, Full Amount, and Central. Cboe also employ analytics-driven liquidity curation powered by their proprietary data platform, ensuring reliable, global support 24×5.

A key aspect of Cboe Spot is its streaming service and historical market data, which features a multi-contributor client base, making it a robust source for FX price discovery. Their market data options offer unique market insights for use in trading models, algorithms, and analytics. This data is accessible directly to clients and through leading market data vendors.