Institutional September Forex Volumes Show Mixed Results Globally

Monday, 02/10/2023 | 07:50 GMT by Damian Chmiel

Cboe FX volumes rose to $952.01 billion compared to August 2023.

360T reported higher numbers, while Euronext FX and Click365 showed lower monthly turnover.

According to the latest data from Cboe FX, Deutsche Börse's 360T, Euronext FX, and Click 365, institutional investors showed mixed results in spot currency trading in September 2023. While Cboe reported a noticeable increase despite fewer trading days, volumes in Japan shrank by nearly 17% compared to August 2023.

Cboe FX Reports Strong September Volumes

The American Cboe FX's total trading volume in September was higher than in August despite fewer trading days. The September figure was $952.01 billion, compared to $944.44 billion reported a month earlier.

With 21 trading days compared to 23 in August, this value led to a significant increase in average daily volumes (ADV), which rose by over $4 billion to $45.33 billion from $41.06 billion.

Finance Magnates reported recently that Cboe Digital, a subsidiary of Cboe Global Markets, has partnered with Crossover Markets Group, a digital asset market launched last year by two former Jefferies directors.

Mixed Bag in Europe and Asia

Turning attention outside the US, 360T Deutsche Börse, a leading European institutional FX trading platform , reported a volume of $585.77 billion over 20 trading days in September.

This represents a significant rebound from a sluggish August, where volumes were at $508 billion and still lower than the July level of $616.6 billion. Finance Magnates' calculations indicate that the ADV for this period was $29.29 billion.

360T ADV in September 2023 — Source: 360T

For Euronext FX, a volume decline from $518 billion to $503 billion was reported in September. However, this figure was better than the July report, which showed volumes at $492 billion. The ADV for 21 trading days was $23.95 billion.

Euronext ADV in September 2023 — Source: Euronext

In Asia, and specifically with Japan's Click365 operating under the Tokyo Financial Exchange (TFX), the declines in volume were the most severe. The number of contracts traded fell 16.7% month-over-month to 1,917,266. On a yearly basis, this was a decline of 46.8%.

Research conducted by BCG Expand confirms the mixed nature of these results. As seen below, revenues from currency operations among the top 100 banks dropped more than 15% in the first six months of 2023.

If this pattern continues, it could mean a second revenue decline in three years.

Cboe FX Reports Strong September Volumes

With 21 trading days compared to 23 in August, this value led to a significant increase in average daily volumes (ADV), which rose by over $4 billion to $45.33 billion from $41.06 billion.