The last weekend of the month, so as always we prepared for you a volumes review of biggest FX market players. Today and tomorrow we will look closely at the January results of institutional and retail FX companies, operating in the market.
But before – we have a quick announcement. From next month, we will change the trading volumes publishing rules. For the entire month we are going to discuss brokers reports and then publish short overall summary (with links to full trading volumes reviews) in the last weekend. For systematization, Saturday will be devoted to retail brokers and Sunday to institutional one.
If you are regularly following financial and trading performance of the biggest players, then starting from March you can look for these information over the whole month! At the end I wanted to invite you to participate in Price Action for Commodities and Stock Indices webinar, hosted by Forex University. You can find more information here.
According to recently published press release, the CLS Group has reached an average FX daily volume (ADV) at $5.29 trillion. This represents an increase of 8.6% ($420 billions) comparing to December 2012 figures, in which group reported $4.75 trillion ADV.
It should be also noted, that YoY results were also improved. ADV in January 2013 reached the $5.19 trillion level or approximately $100 billion lower than in the current year. This translates only for 2% increase – but we have to remember that in comparison with other market entities it is a really good result.
NOTE: We remind, that the CLS Group take into account two sides (in its reports) when it comes to FX market transactions. In order to compare these data with other brokers or semi-annual reports made by the Bank for International Settlements, the gross value should be divided by two.
KCG, company operating in New Jersey, yesterday published a report summarizing the results of trades and volumes for the month of January 2014. The average daily volumes in KCG Hotpost totaled$34.1 billion, increasing by 6.5 billion comparing to December’s ADV (27.6 billion), which represents a upward jump of over 23% – in comparison to last month.
This allows to estimate, that volumes arising out of FX during the entire month amounted to approx. $749 billions (ADV multiplied by the trading days in a month). In the yearly view, January data turned out to be about 26% better than twelve months ago (YoY).
The second of Japan’s biggest retail brokers (in terms of volumes), DMM Securities, yesterday published its January report. As in the case of GMO Click Securities, which released the report just last week, DMM can boast a really strong upward trend during the first month of 2014. Volumes worth increased by over 55% to $777.1 billion dollars level. This is the highest value since July, when the monthly volumes exceeded 968 billion.
The situation is similar to that from prior year. December’s poor results, a clear improvement in January and achieving record-breaking results within the next six months. Of course, we cannot forget about the declines of yen volatility which reflected a decline in the trading activity – second half of 2013 reports showed decrease in averaged volumes up to 50% from earlier peaks.
Thomson Reuters and FXall
Thomson Reuters, a dealer based in Great Britain can boast of a dynamic growth in trading volumes – with the ADV more than $117 billion. It’s a really strong upward bounce after huge declines in trading activity, which we observed in the last months of 2013 after the U.S. government shutdown and tapering which was keeping traders on the sidelines.
January in the global currency markets is usually a kind of “starter” after the winter holiday season and a bit dormant December – everyone is preparing for achieving years peak in March and April. Average daily volumes at the level of $117 billion gave an increase of 27% compared to the previous month.
FXall, foreign ECN operating under the Thomson Reuters also ended January with positive results. Average daily volumes for FXall platform amounted to $123 billion – an 23% MoM increase and 13% YoY increase.
Intercontinental Exchange Group, the leading global network of exchanges and clearing houses, reported few days ago (February 5th) exchange traded volumes for January 2014. The average daily volume (ADV) for global derivatives totaled 10,4 million contracts (about 8% less than in January 2013).
Total commodities indicator (energy, agriculture, oil, etc.) increased by 15% due to the good results achieved in agricultural and oil contracts. In the same time, total financial ADV decreased by 24% primarily due to the lower volatility of European interest rates related to high volumes in January. To some extent, declines were corrected by 20% equity index increase.
As for the FX market, ICE’s average daily volume was 26 000 contracts– comparing to the January 2013 it is about 19% worse result (decrease of more than 7 thousand contracts per day).
That’s all for today – the second part of the biggest brokers trading volume summary will be published tomorrow, of course in the pages of comparic.com!