Cboe Sees 8.2% Jump in November Spot FX Trading Demand

After a drop in demand in October, the trading volume with spot 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 (forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) on Cboe FX Markets significantly jumped in November 2021. According to the official figures, the overall trading volume for the month came in at $776.5 billion.

That was a month-over-month jump of more than 8.2 percent, but on a yearly basis, the FX trading demand slipped marginally by 1.6 percent.

The average daily volume (ADV) for last month came in at almost $35.3 billion, which is more than 3.2 percent higher than the previous month’s ADV of $34.1 billion. Moreover, November had 22 trading days, compared to 21 in October, which pushed down the monthly ADV despite a higher total trading volume.

Also, the growth in November trading volume is signalling a rebound in market demand as total trading demand for the month was the second-highest in 2021, which was just behind $880 billion recorded in March.

Though the spot exchange recorded its lowest daily FX demand on November 25 with only $15.2 billion, the demand skyrocketed on the last day of the month with the daily volume reaching $59.7 billion.

Impressive Numbers

Meanwhile, Cboe Global Markets ended the third quarter of 2021 with a net revenue of $370 million, which is nearly 27 percent higher than the same quarter of the previous fiscal year. However, the EBITDA margin for the period dropped 10.9 percentage points.

The US derivatives exchange giant is now strengthening its presence in neighboring Canada as it is acquiring the Toronto-based stock exchange, NEO. The acquisition deal is expected to be closed by the first half of 2022, but the involved amount was not disclosed.