Cboe FX volume grows in healthy double digits YoY, but lower MoM

abdelaziz Fathi

The FX trading venue of Cboe Global Markets, Inc. (Cboe: CBOE | NASDAQ: CBOE) has reported trading volumes for October 2021, which took a step back compared to a somewhat stronger performance in the previous month.

Cboe’s institutional spot FX platform saw its average daily trading volumes amounting to $34.1 billion in October 2021, down 0.4 percent month-over-month from $34.3 billion in September 2021.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated a strong growth, rising by 10 percent when weighed against $30.9 billion a year earlier.‎

Looking at its total volumes, Cboe FX inked a figure of $717 billion, down 5 percent on a month-over-month basis from $754 ‎billion in September 2021‎. This figure was even higher by 5.4 percent year-over-year when weighed against $680 billion in October 2020.

Cboe FX turnover crossed the $1 trillion milestone in 2020 amid coronavirus-driven volatility that has shaken awake previously slumbering FX markets. However, activity at major institutional ECNs has been consolidating this year as intense chaos triggered by Covid-19 lost some steam.

The venue also hit its yearly peak for 2021 in March at $880 billion. Since then, demand for Cboe’s versatile products has been muted as concerns over the COVID-19 pandemic and uncertainty surrounding the FED’s policy drove many investors onto the sidelines.

Cboe’s foreign exchange franchise saw its market share at a new all-time high of 17.0 percent in the Q3 2021 compared to 15.9 percent in last year’s third quarter.

Despite a challenging cost environment, Cboe’s Global FX posted $14.3 million in net revenue during the third quarter, up 8 percent over a yearly basis. Average daily turnover traded on the Cboe FX platform was $32.4 billion for the quarter, up 7 percent from last year’s third quarter while net capture per one million dollars traded was $2.77.

Cboe FX Markets teamed up in October with the London-based market maker to launch a hosted algorithmic execution service. The connection between XTX Markets and Cboe comes as algo trading as an execution strategy gains popularity with FX traders.

XTX Markets’ Execution Algo will enable Cboe FX users to benefit from its implementation shortfall execution algorithm, which aims to reduce slippage to arrival price. The institutional FX venue has also secured exclusive rights over use of the XTX Algo in the anonymous ECN space.

Read this next

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

<