Thomson Reuters Volumes Rebound in June, Remain Lower YoY

Thomson Reuters has just announced the company’s latest foreign exchange trading figures for the previous month and the results are not impressive. The total average daily volumes (ADV) recorded in June on the company’s Thomson Reuters Matching and FXall platforms increased by 6 percent when compared to May, marking $375 billion.

The number remained lower when compared to last year, when the 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 on the foreign exchange markets was hitting multiyear lows. Looking at specifics, the figure reported in June this year is lower than a year ago by 3 percent.

This number doesn’t look particularly worrying in light of the annual decline, however if we compare the figure to one of the biggest competitors of Thomson Reuters on the electronic foreign exchange market we see a big divergence.

Earlier this month, ICAP’s EBS foreign exchange broking unit reported that ADV totaled $100.8 billion. The figure was higher by 31 percent when compared to last year. Looking at the trends it seems that ICAP’s EBS is recovering some ground it lost earlier mainly to FXall.

Thomson Reuters reported that the ADV for spot trading totaled $108bn last month. The figure is marginally lower than May and 6 percent down when compared June 2014.

The remaining $267 billion were realized in 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 (NDFs).