Currency volumes on TR platforms drop in August as spot trading shrinks

Thu Sep 8, 2016 11:30am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

LONDON, Sept 8 (Reuters) - Average daily volumes on currency trading platforms run by Thomson Reuters fell in August, with spot trading sliding to its lowest in more than three years as the summer lull hit activity.

Spot volumes fell to their lowest since January 2013 at $83 billion in August, down from $97 billion in July and $116 billion in June - when volumes shot up after the results of Britain's referendum on EU membership were announced on June 24 and the pound and other major currencies saw sharp swings.

Total foreign exchange trades across TR platforms, including forwards, swaps, options and non-deliverable forwards (NDFs), averaged $342 billion a day over the course of the month, down from $359 billion a day in July and $364 billion in the same month last year.

EBS, which is owned by the world's largest inter-dealer broker ICAP, said earlier this week that volumes for the U.S. dollar, euro and yen fell 25 percent in August compared with the previous month.

Daily volumes in the currency market have been hurt in recent months by regulatory changes that have crimped banks' risk-taking ability, and by lower global trade flows. Some in the industry had hoped the volatility in the two weeks following the Brexit vote might mark the start of a broader trend that would support more trading in general.

Instead, with many traders on holiday, the volatility of the pound has fallen back to levels seen at the start of 2016 and those on the euro are near their lowest in two years. (Reporting by Anirban Nag; Editing by Nigel Stephenson)