As Volatility Returns, Cboe FX Volumes Rebound from Summer Lull

After a period of low trading activity through the last two months, Cboe’s institutional spot FX platform witnessed a slight uptick in the month ending September 2018. The venue saw a ‎positive performance as a rise in 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 from summer lull encouraged more buying and selling ‎of currencies at major institutional marketplaces.‎

Following a bumpy period over the summer, Cboe FX disclosed a total trading volume of $715 billion in September 2018, down 11 percent on a month-over-month basis from ‎$802 ‎billion in August 2018‎. In a different pattern, the figure was even higher by three percent year-over-year when weighed against $695 billion in September 2017.

Also, the 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’s institutional FX trading venue saw its average daily trading volumes amounting to $35.7 billion in September 2018, up 2.6 percent month-over-month from $34.8 billion in August 2017.

On a year-over-year basis, the ADV figure illustrated a more upbeat picture, climbing by eight percent when weighed against $33.1 billion a year earlier.‎

The numbers released by Cboe FX, formerly Hotspot, follows a strong start for the year, where the institutional venue’s turnover outperformed in January after securing $938 billion in volumes, while its ADV hit a record $44.0 billion in February 2018.

September had been an active month, with volatility benefiting from rising geopolitical tensions, concerns about US-led trade wars with several countries, and the prospect a global economic growth boom nearing its peak. Key currency pairs have departed its wait-and-see mode seen in July and August where they were stuck in narrow price ranges.