FXSpotStream FX turnover surges to record highs in February

The first group of institutional FX platforms to report their monthly volumes indicate that February was a busier month all round, with FXSpotStream setting its highest ADV on record.


Total trading volumes on FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, ticked higher last month, helped by a rise in politically driven volatility. Specifically, February’s figure came in at $1.26 trillion, which was higher by 14 percent from $1.11 trillion in the previous month and also rose by 27 percent on a yearly basis.

February’s average daily volume (ADV) was reported at $63.13 billion. The figure is a new all-time high, besting the previous record set back in March 2020 at $62.3 billion.‎

Additionally, the ADV metric was higher by 19 percent from $53 billion in January 2022 and increased 27 percent year-over-year when compared with $49.5 billion in February 2021.

The total monthly volume across FXSpotStream’s streaming and matching products was comfortably above the $1 trillion mark in the last two 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.

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.

With nobody having a clue so far, other institutional FX platforms, including Cboe FX, CLS, and Thomson Reuters, 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.