FX comment: Heat on HotSpot for double counting
Volumes have never been a particular favourite of mine, especially when they are presented in different formats, in percentage increases, in currencies other than USD. Even so, it came as something of a surprise this week when we were tipped off that Hotspot double count their volumes.
We receive Hotspot’s volumes every month in good faith. Perhaps if we had been a bit sharper, we might have noticed that when we receive volumes from other platforms they explicitly note that all volumes are single counted.
theweeklyFiX put this to Bill Goodbody, director and head of sales at Hotspot. He says: “The volume numbers we put out, we refer to as total client transaction volume on a platform. I imagine our competitors would call that double counting.
“We always focus on what our clients are doing and the volumes that they do. On any given trade, obviously, there are two sides. When I look at how much our clients did on any given day or hour, you come up with a number that is, to me, total volume.