CME Group, operator of one of the largest US derivatives exchanges, reported a 3 percent annual decrease in the average daily volume (ADV) of forex derivatives in September, while the ADV index strengthened significantly by 11 percent.
However, the demand for forex trading increased on a monthly basis by 56 percent. The ADV index for the month also remained the highest since the beginning of this year.
According to the platform’s latest trading statistics, FX ADV for the month registered 975,000 contracts compared to the 1 million ADV achieved in the same month last year. Quarterly demand for foreign exchange contracts also fell 6 percent year-on-year between July and September.
Mixed response in several markets
Besides foreign currencies, demand for stocks, agriculture and metal derivatives declined in the month and also during the quarter. However, the general ADV has been dragged higher by the rise in interest rates and energy products.
Today’s players are tomorrow’s merchants
In September, ADV for interest rate derivatives jumped 58 percent to 7.66 million contracts, while energy products jumped 14 percent. On the other hand, mineral products fell by 40 percent, followed by declines in agricultural products and ADV stocks by 25 percent and 8 percent, respectively.
The CME offers forex trading services on its CME Globex platform, and most of the trading takes place on a dedicated electronic platform. Of the total number for this month, only ADV of 18,000 contracts were traded privately.
Meanwhile, other institutional trading platforms posted a similar monthly recovery in forex trading volume from the cyclical summer decline. Cboe, which operates a rival derivatives exchange in the United States, posted a monthly jump of 18.5 percent in trading volume in September. FXSpotStream, the multi-bank forex aggregator service for forex trading, reported an increase in total volume to $1.06 trillion with an ADV of $48.353 billion.