EBS FX Volumes Climb in January Due to Volatility

ICAP, a UK-based voice and electronic dealer broker and provider of post trade risk services, has released its latest tranche of monthly statistics and volumes covering its electronic 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) platform EBS for the month of January 2017.

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EBS’ January 2017 FX volumes were pointed higher in the first month of the new year, coming in at $93.2 billion, which was good for a month-over-month gain of 24.6 percent from $74.8 billion in December 2016.

These volumes were boosted by a return of 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 to currency markets following the seasonal slowdown in December. Moreover, the new administration of Donald Trump in the US also sparked movement across a number of markets in January.

Comparing this figure on a year-over-year basis, January 2017 volumes did incur a decline compared to January 2016, showing a retreat of -10.2 percent year-over-year from $103.8 billion.

Finally, ICAP’s US Treasury activity during January 2017 was also trending lower, specifically over a year-over-year basis. The latest reading showed a figure of just $178.5 billion in January 2017, lower by -12.0 percent than $202.9 billion in January 2016.