Foreign exchange trading volumes dropped in August across Integral’s trading platforms as currency markets saw a relatively quiet period after consecutive months of strong trading activity. August volumes outpaced those of last year, though turnover is still down month-over-month.
Integral said that the average daily volumes (ADV) across its platforms totaled $46.3 billion in August 2022, which was the lowest reading since October 2021. The figure dropped 20 percent over a monthly timeframe, compared to the record it hit at $57.3 billion in March.
Additionally, August volumes were above those reached in the same month a year ago. Specifically, the latest figures reflect a 5 percent increase when weighed against the metrics of August 2021.
Reported ADV represents volumes traded across the group’s entire liquidity network, including TrueFXTM and Integral OCXTM.
The traditional subsided volatility across financial markets led to a dip in trading activity on major institutional FX venues, industry data shows.
Trading desks at some of the largest players in the foreign exchange market were also grappling with thin volumes. The trend of weaker turnover was observed in the monthly figures from Intercontinental Exchange and Saxo Bank.
Integral opens up in Singapore
Integral’s Open Currency Exchange (OCX) brings a wide spectrum of FX market participants into a single integrated network of liquidity, where they can trade with each other. Clients of the OCX pay a monthly fee for access to the exchange, instead of per-trade fees. While it initially launched with a monthly subscription cost of $275, it was soon lowered to accommodate the trading volume of each user, rather than imposing an even charge to clients of all sizes.
Integral has expanded its technology services in Asia with a new trading data centre in Singapore. Integral’s cloud-based SaaS FX workflow platform went live on Equinix’s Singapore SG1 data center, which enables it to provide localized liquidity and execution services from a Singapore base.
The move provides banks, brokers and other market participants with a complete eFX system for their internal traders and external customers. On top of that, it also improves the trading experience for local partners in Singapore and the APAC region. Specifically, local clients will be able to deploy pricing engines, algos, connectivity and distribution tools immediately, as well as making prices, obtaining liquidity and hosting algorithms in a low latency configuration.
The Singapore presence adds to Integral’s existing operations in London and New York, as well as marks the firm’s third major global foreign exchange trading location. Founded in 1993, Integral maintains development, support, and sales offices in Palo Alto, New York, London, Tokyo, Singapore and Bangalore.