FXSpotStream volume ends final month of 2022 on a weak note

abdelaziz Fathi

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for December 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Total volumes submitted to FXSpotStream was down -15 in December month-over-month, coming in at $1.26 trillion from $1.48 trillion in November. Across a yearly timetable, the figure reflected an advance by 27 percent relative to 2021’s figure of $986 billion.

December’s average daily volume (ADV) was reported at $57.6 billion. The ADV metric was down by 14.4 percent from $67.2 billion in November 2022, but increased 34 percent year-over-year when compared with $42.8 billion in December 2021. This figure is the lowest point for ADV since January 2022.

The total monthly volume across FXSpotStream’s streaming and matching products was comfortably above the $1 trillion mark in 2022. The activity got off to a strong rebound as the financial markets kicked off the year in high gear, with a multitude of factors helping steer volumes across several venues.

These difficult conditions could become increasingly common as investors brace for plenty of hurdles as conflict between Russia and Ukraine has been causing knock-on effects globally, which pumped up FX hedging trades.

FXSpotStream provides a multibank FX aggregation service for spot FX trading. The platform operates as a bank-owned consortium that provides the infrastructure to facilitate the route of trades from clients to liquidity providers.

FXSpotStream has recently upgraded its offering with the deployment of a new low-latency architecture. The vendor says their upgrade contributes to a faster trade, adding that it involves a comprehensive overhaul of the existing infrastructure in place for the company’s liquidity providers and clients. This allows them to optimize every step of the tick-to-trade loop between FSS’ trading infrastructure and the trading venue.

FXSpotStream’s offering is a client-to-bank platform, with each liquidity taker required to ‎create individual credit relationships with participating banks.‎ This differs from other multi-dealer platforms, such as FX ECNs like Hotspot and ‎EBS Markets that operate with centralized order book systems for their participants.

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