Currency volumes on TR platforms drop in August as spot trading shrinks

Published 2016-09-08, 11:30 a/m
© Reuters.  Currency volumes on TR platforms drop in August as spot trading shrinks
NXGN
-
TRI
-

LONDON, Sept 8 (Reuters) - Average daily volumes on currency trading platforms run by Thomson Reuters TRI.TO fell in August, with spot trading sliding to its lowest in more than three years as the summer lull hit activity.

Spot volumes fell to their lowest since January 2013 at $83 billion in August, down from $97 billion in July and $116 billion in June - when volumes shot up after the results of Britain's referendum on EU membership were announced on June 24 and the pound and other major currencies saw sharp swings.

Total foreign exchange trades across TR platforms, including forwards, swaps, options and non-deliverable forwards (NDFs), averaged $342 billion a day over the course of the month, down from $359 billion a day in July and $364 billion in the same month last year.

EBS, which is owned by the world's largest inter-dealer broker ICAP IAP.L , said earlier this week that volumes for the U.S. dollar, euro and yen fell 25 percent in August compared with the previous month.

Daily volumes in the currency market have been hurt in recent months by regulatory changes that have crimped banks' risk-taking ability, and by lower global trade flows. Some in the industry had hoped the volatility in the two weeks following the Brexit vote might mark the start of a broader trend that would support more trading in general.

Instead, with many traders on holiday, the volatility of the pound has fallen back to levels seen at the start of 2016 and those on the euro EURVOL= are near their lowest in two years.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.