Thomson Reuters' Reports Uneven May Volumes, Spot FX Continues Fall

Thomson Reuters (NYSE:TRI) has reported its FX trading volumes for the month ending May 2016, having undergone an uneven month overall in terms of spot and total product volumes, according to a Thomson Reuters statement.

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Thomson Reuters, like many other institutional FX venues, has been in the midst of a tranquil period of volumes extending back to the beginning of the year. As is the case with other exchanges in the industry, Thomson Reuters has undergone a consecutive monthly decline in its FX spot volumes, with May 2016 being no exception.

During May 2016, Thomson Reuters’ average daily volume (ADV) of its 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), yielded a total of $347 billion, which was lower by a margin of -7.0% MoM from $373 billion in April 2016 – this figure was lower against May 2015, albeit by a mitigated margin of -1.7% YoY from $353 billion.

Delving deeper into the latest tranche of data at Thomson Reuters, May 2016’s total of $347 billion of ADV was disaggregated to $94 billion ($97 billion in April 2016) in terms of FX spot volume, with $253 billion for other products ($276 billion in April 2016). Monthly spot FX volume has now fallen in four consecutive months, with May 2016 seeing a decline of just -3.1% MoM.

Thomson Reuters made headlines earlier this month after it launched a new FX service, theWM/Reuters 2pm CET benchmark, which was geared towards corporates that need to value, hedge and/or settle cross-border transactions.