Hotspot FX trading volumes take biggest hit of the year
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Foreign Exchange

Hotspot FX trading volumes take biggest hit of the year

Hotspot FX, the multi-dealer platform owned by Knight Capital Group, said month-on-month average daily volumes fell more than 18% in November.

A total volume of $1,226.5 billion was transacted last month, corresponding to an average daily volume of $68.3 billion, the company said in its latest monthly trading report. Hotspot said its platform accounted for 8.64% of publicly reported spot electronic FX volumes, down from October when Hotspot accounted for 9.5% of publicly reported volume.

Last week, EuromoneyFXnews reported that lower EURUSD trading – but higher trading in Commonwealth currencies, such as AUD, CAD and GBP – was behind the relative outperformance of Thomson Reuters over EBS.

However, Hotspot’s latest report showed EURUSD trading, as a proportion of total volumes on the platform, increased from 47% to nearly 51%, the highest level on record. Volume in USDJPY, the fourth most-traded pair on Hotspot, fell from 10% to 8% while volumes in all other currencies were roughly unchanged.

In comparing monthly volumes with other venues, Hotspot seems to have marginally lagged behind its main rivals this month. Volumes on CME and ICE – the two major exchanges that disclose FX trading volumes – fell 12% and 14% respectively.

Volumes on interdealer brokers EBS and Thomson Reuters fell 3% and 15% respectively.

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