ICAP's EBS Volumes Tank Lower in February, Remain Higher YoY

Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading volumes on inter-dealer broker ICAP's platform for electronic FX EBS have declined materially in February, after declining Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term across major forieng exchange pairs led to subsiding activity across the board.

Daily trading volumes on EBS throughout the month of February totaled $94.1 billion, which is lower by 27 percent when compared to last month, yet remains higher than a year ago by about 13 percent.

Trading volumes on ICAP's EBS platform have rebounded materially from the lows set in the first half of 2014. While for now the foreign exchange market remains active and relatively robust in terms of trading volumes, the scenario which materialized last year could still be repeated.

Trading ranges dominated the foreign exchange market in the second half of 2015 leading to materially lower volumes. The euro traded lower once more last month, however it traded between 1.12 and 1.15 for the most part of February.

Tight range trading ensued in Japanese yen pairs too, with major moves limited to the British pound, which rallied on expectations that a rate hike is being contemplated by the Bank of England before the end of 2015.