Activity on FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, dropped in July as average daily trading volumes took a step back from the record figures it printed the month prior.
During July 2019, FXSpotStream reported an average daily volume (ADV) of $36.27 billion. The number moved lower on a monthly basis by -14.2 percent from $42.25 billion back in , when volumes shot up to a new all-time high. This figure, however, reflects a year-on-year increase of 31 percent compared with $27.7 billion in July 2018.
FXSpotStream’s ADV in July was 27.5 percent greater than HotSpot’s ADV of $27.5 billion, exceeding the Cboe’s venue every month since November 2018, with the exception of one month.
Meanwhile, saw a slight drop across its total trading volumes in July 2019 after reported $834 billion for the month, down 1.29 percent month-on-month from $845 billion back in June 2019.
The company’s trading facilities were open on 23 trading days, which is three days more than the prior month.
Daily volumes in the currency market have been hurt in July by seasonal factors. Aside from the usual summer lull, a lack of fresh incentives and uncertainties over central banks’ policies to jump-start their respective economies, were keeping investors mostly in the wings.
Earlier today, Electronic brokerage firm LLC (NASDAQ:IBKR) reported flat volumes for July 2019 which came almost unchanged from the previous month.
A Client to Bank Platform
FXSpotStream is a wholly owned subsidiary of LiquidityMatch LLC and was created as a cost-effective platform, which is offered on a commission-free model for buy-side firms to tap pricing from banks using a multi-dealer aggregating platform.
The group started the streaming aggregation business in 2011 with just a spot FX API and six liquidity providers, but now utilizes liquidity from a total of twelve leading global banks – BofA Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Commerzbank AG, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered, and UBS.
FXSpotStream’s offering is a client-to-bank platform, with each liquidity taker required to create individual credit relationships with participating banks. This differs from other multi-dealer platforms such as FX ECNs like Hotspot and EBS Markets that operate with centralized order book systems for their participants.