Spot FX volume drops 28% at Cboe in April
Cboe’s institutional spot FX platform reported its trading volumes for the month ending April 2023, which saw a sharp drop to hit its lowest point since December.
During April 2023, Cboe FX disclosed a total trading volume of $793 billion, down -28 percent on a month-over-month basis from $1.11 trillion in March 2023. This figure was however higher by 1.4 percent year-over-year when weighed against $777 billion in April 2022.
In addition, the exchange’s institutional FX trading venue saw its average daily trading volume amounting to $39.6 billion in April 2023, down 19 percent month-over-month from $48.35 billion in March 2023, which was the highest in three years.
On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated stronger performance, rising by 5.4 percent when weighed against $37 billion a year earlier.
Cboe FX brings the benefits of an independent, transparent market structure, and will take advantage of custom liquidity pools to meet participants’ execution criteria, with configurable firm and non-firm streaming quotes for tailored liquidity needs.
While at the Annual FIA Futures and Options Expo, FinanceFeeds aslo caught up with James Arrante, senior director of FX & UST product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed assts markets and learn more about the bourse operator’s recent initiatives.
Liquidity management has been a key focus at Cboe FX over the past few years, coupled with adding extensive analytics capabilities. The company operates an electronic foreign exchange trading venue that permits certain institutions to enter into spot transactions with their preferred counterparties to meet their specific trading needs.
We reported on Cboe FX in December when oneZero added it to the vast network of liquidity providers and venues within its EcoSystem. The move provided the business with access to over 200 FX brokerages that make more than 10 million transactions and 150 billion quotes per day across retail and institutional FX markets.
