Cboe FX volume rises slightly in February 2023

Cboe’s institutional spot FX platform reported ‎its trading volumes for the month ending February 2023, which saw yet another step forward after making a strong rebound in January.


During February 2023, the exchange’s institutional FX trading venue saw its average daily trading volume amounting to $41.9 billion in February 2023, up three percent month-over-month from $40.8 billion in January 2023.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated flat performance when weighed against $42 billion a year earlier.‎

In addition, Cboe FX disclosed a total trading volume of $838 billion, down -7 percent on a month-over-month basis from $902 billion in January 2023‎. This figure was however virtually unchanged year-over-year when weighed against $840 billion in February 2022.

Cboe FX turnover crossed the $1 trillion milestone in 2022 in response to Russia’s invasion of Ukraine. The recent pullback, however, raises serious questions about how deep a possible pullback in volumes will be, though it should not cause panic.

We last reported on Cboe FX in December when oneZero added it to the vast network of liquidity providers and venues within its EcoSystem. The move provided the business with access to over 200 FX brokerages that make more than 10 million transactions and 150 billion quotes per day across retail and institutional FX markets.

Cboe FX brings the benefits of an independent, transparent market structure, and will take advantage of custom liquidity pools to meet participants’ execution criteria, with configurable firm and non-firm streaming quotes for tailored liquidity needs.

While at the Annual FIA Futures and Options Expo, FinanceFeeds aslo caught up with James Arrante, senior director of FX & UST product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed assts markets and learn more about the bourse operator’s recent initiatives.

Arrante highlighted their expanding model, which has grown to include four different entities and seven platforms in total. Cboe’s FX business now covers disclosed trading solutions, outright deliverable forwards, and non-deliverable forwards (NDFs) through Cboe SEF. That, according to Arrante, covers all manners of how clients interact in the market and provides greater control of the trading process, enabling better execution and lower transaction costs for their global customer base.

Liquidity management has been a key focus at Cboe FX over the past few years, coupled with adding extensive analytics capabilities. The company operates an electronic foreign exchange trading venue that permits certain institutions to enter into spot transactions with their preferred counterparties to meet their specific trading needs.