Thomson Reuters Reports Flat FX Volumes in October 2016

Thomson Reuters (NYSE:TRI) has reported its FX trading volumes for the month ending October 2016, which were largely flat MoM after what had been a strong comeback in the previous month, according to a Thomson Reuters statement.

In particular, Thomson Reuters saw a total average daily volume (ADV) of its 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 (FX) products, including spot, forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term options and non-deliverable forwards (NDF), come in at $364 billion, mounting an increase of 3.4 percent YoY from $353 billion in October 2015. However, the figure was virtually unchanged compared to September 2016, marking a drop of less than 0.1% MoM from $365 billion in the month earlier.

Of the $364 billion however, $95 billion was FX spot volume compared to $269 billion for other products. Despite the monthly spot FX volume being slightly higher MoM at Thomson Reuters, October 2016 represented a step backwards over a yearly measure. The latest volumes reflect a -8.6% decline from $104 billion in FX spot volume in October 2015.

While October 2016 did not set material changes in terms of volumes, the monthly performance was still strong, especially when weighed against other institutional exchange venues that saw a wide decline in trading volumes during the previous month. In addition, the latest figures also appear to hold onto the majority of momentum seen in at Thomson Reuters in September, which by and large erased a lackluster Q3 2016 in which volumes were trending downward.