Cboe FX volume falls to lowest level since summer

abdelaziz Fathi

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

The exchange’s institutional FX trading venue saw its average daily trading volume amounting to $42.6 billion in February 2024, down 2.3 percent month-over-month from $43.6 billion the previous month. This figure is the lowest since July 2023 when the turnover bottomed out at $41 billion.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated stronger performance, rising by 2 percent when weighed against $40.9 billion a year earlier.‎

Cboe FX disclosed a total trading volume of $895 billion, down 6.7 percent on a month-over-month basis from $959 billion in January‎. However, this figure was higher by 6.5 percent year-over-year when weighed against $840 billion in February 2023.

Cboe Spot was established as the first electronic communication network (ECN) for the institutional FX market and has maintained a leading position for over twenty years. The platform is distinguished by its deep liquidity, anonymous trading, and innovative technology, catering primarily to institutional clients.

Cboe Spot enables various institutional entities such as banks, hedge funds, and high-frequency traders to engage in currency trading. The acquisition of Hotspot FX by Cboe Global Markets brought this service into the Cboe family, where it has been integrated with Cboe’s suite of trading offerings.

The platform offers a diverse suite of products across multiple platforms, including ECN, Full Amount, and Central. Cboe also employ analytics-driven liquidity curation powered by their proprietary data platform, ensuring reliable, global support 24×5.

A key aspect of Cboe Spot is its streaming service and historical market data, which features a multi-contributor client base, making it a robust source for FX price discovery. Their market data options offer unique market insights for use in trading models, algorithms, and analytics. This data is accessible directly to clients and through leading market data vendors.

Looking ahead, Cboe FX aims to focus on growth in its NDF platform, offering a range of functionalities similar to its spot markets, including Full Amount and Hidden Pegs. They also plan to expand globally, with the introduction of connectivity through a Tokyo point of presence.

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