Cboe Sees 12.6% MoM Jump in January FX Demand

Cboe FX Markets, the foreign exchange (forex) spot trading venue, published metrics for January, showing a healthy recovery from the cyclical drop in demand seen in the previous month. The total trading volume for the month came in at $767.7 billion.

That figure was almost 12.6 percent higher than the previous month when it witnessed $681 billion in volume. The average daily volume (ADV) for the month stood at more than $36.5 billion, compared to December’s $29.6 billion. Although, January only had 21 trading days compared to December with 23.

The recovery in demand in January was expected as the trading market usually sees a dip in activities in December with the holidays season. Forex trading demand on Cboe mostly picked up at the end of last month,, and January 27 recorded the highest activity in the month with over $50 billion in trading volume.

Increase in Yearly Demand

On a yearly basis, spot forex trading demand on Cboe jumped significantly higher, showing a healthy upward move in the market. The total monthly trading volume in January 2022 came in $61 billion or 8.7 percent higher than the figure in the same month a year ago.

However, there was a narrow difference in the ADV as January 2021 had 20 trading days. The ADV in that month came in at $35 billion.

Cboe is one of the largest derivatives trading venues in the United States. It reported a 19 percent jump in options trading volume in 2021. Furthermore, around 3 billion options contracts were traded last year, making it a record year for the platform.