Exness FX volumes see 10pct drop in August as summer lull weighs

abdelaziz Fathi

Multi-asset brokerage, Exness has reported its monthly metrics for August 2021, having failed to hold on to the strong momentum seen last month due to a less volatile market atmosphere. The latest figures saw a sizable consolidation in key volume segments, failing to overtake a number of recent highs seen over the last three months.

Total trading volumes on the Exness’ platform were reported at $879 billion, down 9.8 percent from a record $975 billion in the previous month.

Over a yearly basis, the multi-regulated FX broker’s turnover was significantly higher by 50 percent when compared with $590 reported back in August 2020.

Activity on Exness’ trading platform has been consolidating as the bull run in the third quarter created a profitable opportunity for industry players, from major venues to an array of retail-focused FX brokerages.

The company also said its active client base is now at record levels and is materially higher than it was in 2020, with levels of retention comparable to historical averages. Exness reported the figure at 224,544, up 57 percent from 142,753 in the same month a year earlier. On a month-over-month basis, the number of active clients is also up by 7 percent from 209,370 in July.

The average trading volume in 2021 was $820 billion, but the metric has jumped to record levels above the $900 billion mark over the last three months due to frenzied buying and selling activities. Trading has been driven by investor fears that despite the new vaccines, coronavirus will continue to put a damper on the world economy.

The uptick in volumes also comes as Exness, which is authorised by the FCA as an IFPRU €730K firm, continues to restructure its business.

Exness acquired its FCA license in the UK back in 2016 to operate a foreign exchange and CFDs brokerage business. After one year, the broker launched an institutional offering, which is focused on providing liquidity for FX, CFDs, metals, and commodities. In light of an internal business decision to focus on other markets and grow their B2B operations, Exness decided in 2019 to close the retail business in the EU/EEA region, including in the UK.

At the time, Exness said that one of the reasons for the launch of its institutional business arm is the recent changes in the regulatory environment. Indeed, the retail FX market in Europe is becoming relatively challenging for many platforms, which is why many brokers are looking into new opportunities in the wholesale liquidity and clearing market.

The Financial Commission announced in July that Exness has become a newly approved member of the self-regulatory organization.

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