Good news from FXMarketSpace
I mentioned to an old mucker, who is head of FX at what could be termed a regional bank, that FXMS suddenly seemed to be doing quite well in EUR/JPY. “It’s the cheapest way of pumping up the volume. It’s probably some local bucket shop doing the arb between EUR/USD, USD/YEN and EUR/JPY,” was his, even by my standards, very cynical response.
I do try to be impartial, I really do. But sometimes I feel that my life is sometimes made unnecessarily difficult. Most frequently, this is as a result of my own behaviour and readiness to jump to conclusions. Anyway, for some reason I have become a little bit obsessed by FXMarketSpace (FXMS), the fledgling 50/50 joint venture owned by the CME and Reuters. I say for some reason because it seems my obsession is not shared by my readers. Up until now, the vast majority of the people I talk to in the market have been completely underwhelmed by the platform.
However, as Mark Robson, FXMS’s chief executive, rightly pointed out to me, I don’t talk to everyone, particularly those down in the market segment that the platform is targeting. Anyway, since the release of FXMS’s first set of volume figures at the start of May, I have been keeping a watch on its turnover, as reported on Reuters, and I did notice that most days these seemed to be hovering around the $500 million a day market. FXMS has confirmed now that its daily average turnover in June was $509 million, which does not look particularly impressive at first glance, but which is a very healthy 54% increase on May.