Cboe’s FX volumes in red as markets in wait-and-see mode

abdelaziz Fathi

Exchange operator Cboe Global Markets reported its trading statistics for December 2021, which were mostly flat in both its options and US equities volumes, as well as seeing a wavering performance across FX and futures business.

Demand for Cboe’s versatile products was muted as concerns over the COVID-19 pandemic and uncertainty surrounding Fed policy drove many investors onto the sidelines.

During December 2021, Cboe FX disclosed a total trading volume of $681 billion, down 12 percent on a month-over-month basis from $776 billion in November‎. In a similar pattern, the figure was lower by -5.3 percent year-over-year when weighed against $719 billion in December 2020.

In addition, the exchange’s institutional FX trading venue saw its average daily trading volumes amounting to $29.6 billion in December 2021, down -17 percent month-over-month from $35.2 billion in November 2021.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated weaker performance, falling by 9.4 percent when weighed against $32.6 billion a year earlier.‎

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.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

Cboe widens FX market share

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 November 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

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<