FX volumes take a step back at FXSpotStream in October

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for October 2022, which moved higher on a yearly basis but reflected mixed changes across executed trade volumes when weighed against the figures of the prior month.

Total volumes submitted to FXSpotStream was down -10 in October month-over-month, coming in at $1.45 trillion from a record of $1.61 trillion in September. Across a yearly timetable, the figure reflected an advance by 37 percent relative to 2021’s figure of $1059 billion.

October’s average daily volume (ADV) was reported at $69.1 billion. The ADV metric was down by 6 percent from $73.3 billion in September 2022, but increased by over a third year-over-year when compared with $50.4 billion in October 2021.

The total monthly volume across FXSpotStream’s streaming and matching products was comfortably above the $1.2 trillion mark in the last six months. The activity got off to a strong rebound as the financial markets kicked off the new year in high gear, with a multitude of factors helping steer volumes across several venues.

A big jump in trading activity

These difficult conditions could become increasingly common as investors brace for plenty of hurdles as conflict between Russia and Ukraine has been causing knock-on effects globally, which pumped up FX hedging trades.

The high volatility helps FX platforms shine when the market is anxious and trading activity is high, but low volatility then hurts when things settle down. With nobody having a clue so far, other institutional FX platforms are also expected to report higher trading activity.

FXSpotStream provides a multibank FX aggregation service for spot FX trading. The platform operates as a bank-owned consortium that provides the infrastructure to facilitate the route of trades from clients to liquidity providers.

FXSpotStream’s offering is a client-to-bank platform, with each liquidity taker required to ‎create individual credit relationships with participating banks.‎ This differs from other multi-dealer platforms, such as FX ECNs like Hotspot and ‎EBS Markets that operate with centralized order book systems for their participants.