CME Group’s EBS Spot FX ADNV Jumps 30% to $76.3 Billion in September

The average daily notional value (ADNV) of spot forex traded on the Chicago Mercantile Exchange (CME) Group’s Electronic Broking Services (EBS) jumped 30% to $76.3 billion in September 2022.

Additionally, the ADNV rose by 31% year-on-year (YoY) last month from the $58.2 billion recorded in September 2021.

These figures are contained in details shared with Finance Magnates and the September 2022 market data released by CME Group on Tuesday.

The EBS is a wholesale electronic trading platform for forex trading with market-making banks and is owned by the CME Group.

‘Strong Overall Performance’

According to Jeff Ward, the Global Head of EBS, forex spot average daily volume (ADV) on the EBS Market G3, which accounts for forex trades in US dollar, Japanese yen and euro, shot up 34% month-on-month (MoM) and 49% YoY.

Jeff pointed out that the USD/JPY pair was particularly strong during the past month as the pair marked its largest day since November 2016 on the EBS Market in September 2022.

“Nearly five times the average daily volume for USD / JPY for 2022 was transacted including US$18.5 billion (single count) vs. the Japanese Yen in the single hour between 8am and 9am GMT,” Ward said.

Sharing further details, EBS said the forex spot in Chinese yuan (CNH) on EBS Market rose 14% MoM and 22% YoY.

It added that trading in CNH surged in the final week of September recording “double its year-to-date ADV levels amid heightened volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.”

Furthermore, the wholesale electronic trading platform disclosed that the EBS Market non-deliverable forwards rose 29% and 41% last month and from the same period last year, respectively.

The EBS Direct spot increased 21% MoM and 18% from September 2021, the platform said.

“EBS Direct Forwards set a record month and two new record days up 55% year-on-year versus September 2021 due to increased client adoption and a more active rate environment,” Ward said.

Speaking on the overall EBS market, Ward noted that the wholesale electronic trading platform recorded “strong overall performance in September versus both [the] prior month and September 2021.”

The EBS executive believes this is a continued reflection of “the value and role of the primary market central limit order book in managing risk in more volatile and uncertain market conditions.”

eFix Matching Service

Meanwhile, EBS said volumes transacted through its eFix Matching Service recorded its fifth largest monthly volume since its launch in 2014.

The volume on the central electronic market utility which helps to cushion benchmark fixing risk increased by 8% from the performance recorded in September 2021.

Furthermore, EBS said end-of-month trading pushed eFix to its fifth-best day since the launch at $18.5, adding that the utility's top five days were recorded this year.

Ward believes these records demonstrate “the criticality of eFix in the management of fixing risk.”