During the month of September 2021, FXSpotStream reported an average daily volume (ADV) of $48.3 billion, which represented a jump of 17 percent month-on-month from $41.3 billion reported in the previous month. August’s ADV figure was the lowest reading since October 2020.
Across a yearly interval, the ADV metric in September reflected an advance of 10.6 percent. September 2021 saw a total of 22 trading days, the same as it had been in the month prior.
In terms of total volumes at FXSpotStream, the last month showed $1.63 trillion, the highest since June 2021. The figure was higher month-on-month from $908 billion in August 2021. The total monthly volumes across its streaming and matching products fell in the prior month below the $1 trillion mark for the first time in three months.
This aggregate turnover was also higher 10 percent relative to that of September 2020 when FXSpotStream users transacted $961 billion.
FXSpotStream got off to a strong rebound as the financial markets closed off the third quarter 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 they move into the fourth quarter, which pumps 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. The secular trend of rising FX volumes will stay into play in October as global markets remain hostage to developments involving the coronavirus and Federal Reserve’s policy, which are currently top of mind.
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.