May Trading Volumes Hit Record Highs at Cboe FX As Volatility Returns

June 1, 2018

Cboe’s institutional spot FX platform on Friday reported ‎its trading volumes for the month ending May 2018, which saw a ‎positive performance as a rise in volatility from multi-year lows encouraged more buying and selling ‎of currencies at major institutional venues.‎

During May 2018, Cboe FX disclosed a total trading volume of $940.2 billion, up 23 percent on a month-over-month basis from ‎$762.9 ‎billion in April 2018‎. In a similar pattern, the figure was even higher by 45 percent year-over-year when weighed against $647.2 billion in May 2017.

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In addition, the exchange’s institutional FX trading venue saw its average daily trading volumes amounting to $40.9 billion in May 2018, up 12.4 percent month-over-month from $36.3 billion in April 2017.

On a year-over-year basis, the ADV figure illustrated a more upbeat picture, climbing by 45 percent when weighed against $28.1 billion a year earlier.‎

The numbers released by Cboe FX, formerly Hotspot, follows a huge surge in trading on GTX trading platforms, the institutional FX unit of GAIN Capital which was recently acquired by Deutsche Borse’s 360T, with its May volumes up 43 percent on last year. Further, GTX ECN turnover saw its best month after securing a gain of 56 percent from a year ago, while its ADV also rose by 26.0 percent month-over-month.

May had been an active month, with currencies volatility benefiting off rising geopolitical tensions, concerns about U.S.-led trade wars with several countries and the prospect a global economic growth boom is nearing its peak. Key currency pairs have departed its wait-and-see mode seen in April where they were stuck in narrow price ranges.

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