Cboe reports +10% increase in monthly FX volumes

Cboe’s institutional spot FX platform today announced its trading volume for the month ending September 2023, which showed resurgence in activity following two consecutive months of reduced trading volumes.

The institutional FX trading venue at Cboe reported an average daily trading volume (ADV) of $45.3 billion in September 2023, marking a 10.6 percent increase compared to the previous month’s figure of $41 billion. On a year-over-year basis, Cboe FX, formerly known as Hotspot, reported a slight decrease of 1.1 percent when compared to the ADV of $45.8 billion from the same month in the previous year.

Cboe FX disclosed a total trading volume of $952 billion for September, reflecting a 1.2 percent month-over-month increase from August’s $944 billion. However, this total volume was 5.6 percent lower compared to the same period in 2022, when the platform registered a total trading volume of $1.008 trillion in September.

Overall, the data reveals a dynamic month for Cboe’s institutional spot FX platform, while the year-on-year figures provide a broader context, indicating a steady performance despite minor variations. As the year progresses, market observers will be keen to see how these trends evolve in the ever-fluctuating landscape of institutional FX trading.

Taking a quarterly perspective, Cboe FX reported a total volume of $2.8 trillion in Q3, indicating a 4.5 percent increase from the second quarter’s $2.8 trillion. The average daily volume also followed a similar trend, rising by the same percentage, from $41.5 billion to $43.3 billion in the recently concluded quarter.

In the second quarter, Cboe’s FX revenue rose to $18.5 million or eight percent higher from $17.1 million in the year prior. Cboe’s institutional spot FX platform saw its average daily trading volumes amounting to $45 billion for the quarter, up 7 percent from Q1 2022. Net capture per one million dollars traded was $2.64 for the quarter, down 1 percent compared to $2.67 in the previous year’s quarter.

Cboe’s foreign exchange franchise saw its market share at a new all-time high of 19.0 percent in the three months through March compared to 17.3 percent in Q1 2022. According to the update, the record figure was driven by increased client adoption of our diverse set of FX order types and trading protocols.

Per its recent report, the Chicago-based exchange benefited from the heightened volatility over the last three months, having collected $471.4 million in net revenue compared to $418 million in Q1 2022. The solid year-over-year growth primarily reflects notable increases in net transaction and clearing fees, as well as access and capacity fees.