Cboe’s FX volume drops for second consecutive month

Cboe’s institutional spot FX platform has published its trading volume for the month ending December 2023, which took a step back after a strong rebound in November.

Cboe FX disclosed a total trading volume of $890 billion, down 12 percent on a month-over-month basis from $1.0 trillion in November‎. However, this figure was higher by 15.1 percent year-over-year when weighed against $773 billion in December 2022.

The exchange’s institutional FX trading venue saw its average daily trading volume amounting to $44.5 billion in December 2023, down 3.1 month-over-month from $45.9 billion the previous month.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated stronger performance, rising by 27 percent when weighed against $35.1 billion a year earlier.‎

Cboe FX Markets is an electronic communication network that caters to the institutional foreign exchange market. It’s a platform where various institutional entities such as banks, hedge funds, and high-frequency traders can 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.

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.