Last month, there was a general downturn of trading activities among several institutional ECNs. As a result, the currency trading volumes of these trades have even diminished further.
The average service of LiquidityMatch LLC fell considerably on the FXSpotStream trading volume. This shortfall has been the worst for the past 15 months. Earlier gains by the company have also wiped out as it faces a descending movement. The company announced that the average daily volume dropped by 7.2% to close with $30.95 billion last month. This figure is the least traded volume since August last year.
Also, the total trading volumes of FXSpotStream reduced drastically as it traded just $650 billion last month. That amount is the lowest volume the company has traded since July last year. However, the trading volume for October was much higher as it recorded an average daily sales volume of $757 billion. The difference, according to o analysts, could be the number of trading days for the month. While November saw about 21 trading months, October had two more days (23 days)
Choe and Fastmatch also in Red
Euronext has also dipped in trading volumes as it reported its monthly volume for November. According to the reports, trading volumes fell considerably with a 27% drop. Fastmatch, now EuronextFC, reported a trading volume of $313 billion for November. The is a 27% reduction from the $429 billion reported last year.
There is also a low reception of the Choe’s spot FX, as it got a weak turnover within last month. Within the month, the Cboe got a trading volume of $598 billion last month, which is far from the $728 billion recorded in October.
Additionally, the FX trading venue has an average daily volume of $31.66 billion in September compared to $28.50 billion in October. That’s a 10% reduction in the trading volumes between the two months.
On a 12-month scale, the ADV figures show that there has been an all-round weaker performance on trading volumes compared to other years. But on a yearly timescale, the ADV fares better as it rose by 20% against the percentage reported within the same period last year.
FXSpotStream also dropped by a strong margin
The FX report indicated that FXSpotStream saw a significant drop in February, as it recorded a total traded volume of $696 billion for the month. This is a drop of 17% from its earlier volume of $844 billion the previous month.
A shift in Paradigm for both companies
With the current negative market trends, Euronext is planning to make a strategic shift by empowering its business towards better sustenance. It wants to make sure that finance technology and innovation are the main focus of the company in 2022, according to CEO Stephane Boujnah. The platform wants to focus its operations on improving the technical competence within the organization, Boujnah reiterated.
Last month, FastMatch reached a settlement agreement with Dmitri Galinov. The former CEO of the company sued the company for unlawfully terminating his employment months after Euronext acquired a majority stake in the company. Both parties have reached a settlement agreement, as the case was settled out of court.