24 Exchange has released its financials for May 2021. The data shows a decline in the FX average daily volume (ADV).
24 Exchange is an over-the-counter (OTC) platform created by Dmitri Galiniv, the founder of Fastmatch. The released financials for last month show that the ADV for May was 13.5% lower than in April. May’s ADV came in at $357 million, while April’s ADV was $413 million.
About 24 Exchange OTC
The OTC platform is under 24 Exchange Bermuda Limited. Galinov launched the platform in 2017 after selling Fastmatch. The firm is based in Bermuda, but the Bermuda Monetary Authority has not licensed it. However, it is fully compliant with the regulations stipulated in the FX Global Code.
The firm has a unique operating model, given that it offers traders 24 hours a day. 24 Exchange allows traders to deal with several assets. The platform’s main target audience is traders looking to conduct cost-effective trades using a diversified asset class portfolio.
Investors Remain Optimistic
While the market may be slowing down after a high period of high demand since the beginning of the year, most market analysts believe that the market is still bullish. This can be proved from 24 Exchange’s financial results, where the demand is still high despite the month-on-month decline.
In August 2021, the firm reached an ADV of $100 million, and the demand has been surging ever since. The first quarter of 2021 was the best for the firm, and the FX demand reached its peak in March 2021 when the total ADV for that month reached $456 million.
However, most firms, including 24 Exchange, have started the second quarter with a slight dip in demand. This may be because of a market correction after the extremely bullish Q1 2021.
The firm may once again achieve its record-high trading volumes after making several strategic investments. Early this year, 24 Exchange wanted to expand its product offering after launching an interbank FX Swaps order book with running quotes.
Moreover, the firm is also seeking partnerships with financial giants whop will open up new markets. Standard Chartered, a leading global banking institution, purchased a stake in 24 Exchange, but the financials for the deal were not disclosed.
In the ongoing market correction, such strategic investments will help the firm move back to its bullish state that started in August last year. However, this will only be achieved if the partnerships allow the firm to gain a new clientele base.