Hotspot FX October volumes fall after September gains

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Average daily volumes (ADVs) on Hotspot FX, the multi-dealer platform owned by Knight Capital Group, fell in October after the platform posted gains in September following a dismal August.

Hotspot recorded ADVs in October of $22.7 billion, down 11.9% from the $25.8 billion posted in September. The total volume of FX transacted on Hotspot in October was $522.9 billion. Year-on-year, Hotspot’s volumes remain down by 33.4% from the $34.1 billion seen in October 2011. October volumes at competing FX dealing platforms also were down month-on-month and year-on-year.

Hotspot FX volume trends compared to their competitors

 Source: Hotspot FX
Figures from Icap's EBS electronic platform showed ADVs in October were down 17% month-on-month to a record low of $92.6 billion and down 46% year-on-year. Thomson Reuters reported ADVs in October of $120 billion on its main FX spot trading service – Thomson Reuters Dealing, Matching and Reuters Trading for FX – down 10% from September and 23% lower than October 2011. FXall, the leading multi-dealer platform for non-financial corporates and asset managers that was acquired by Thomson Reuters in July, fell 10% month-on-month in October to $94 billion, but FXall ADVs were up 9% year-on-year.

Meanwhile, notional ADVs at CME Group dropped 30% month-on-month in October and were down 23% year-on-year.