London Stock Exchange Group Hits Record FX Volumes Early This Year

The London Stock Exchange Group (LSEG) has reported a sharp rise in foreign exchange (FX) trading activity in the first three months of this year. The company said it recorded its highest-ever average daily FX volumes across January, February, and March. The month of March alone reached an average of $544 billion per day.

The firm said the new improvement was driven by strong activity across LSEG’s platforms, as more clients moved currency to respond to changing global conditions. The first quarter performance showed a clear upward trend, with volumes moving from $504 billion in January to $518 billion in February, before reaching $544 billion in March.

LSEG Reports A 13.5% Increase In Revenue From Its Markets Division

LSEG said this strong FX growth supported an overall 13.5% increase in revenue from its markets division. Total income for the quarter stood at £2.26 billion, reflecting a 7.8% rise compared to the same period last year.

The company said that its markets division benefited from wider demand across different areas of trading, including FX. The rise in foreign exchange volumes came as global investors adjusted to new economic data and uncertainty in financial markets. These conditions led many to take positions in currencies to manage their exposure to risk.

LSEG Chief Executive Officer David Schwimmer said the company recorded growth across most of its trading businesses. He explained that continued market shifts and currency movements helped drive this rise in volumes. The increase in FX activity was not linked to one region or platform but spread across different client groups and trading solutions.

Spot FX volumes reached $99 billion in January alone. This number was higher than December’s total and showed a 5.3% increase compared to the same month in the previous year. LSEG said non-spot FX products, such as forwards and swaps, also posted strong performance. These products reached $403 billion in average daily volumes, only the second time this level was reached in LSEG’s history.

Demand For FX Trading Grows Due To Market Uncertainty

According LSEG’s report, the increase in FX volumes came from a mix of client needs. Traders and institutions responded to shifts in global interest rates, inflation reports, and geopolitical events. LSEG said these factors created a demand for tools to manage currency exposure, leading to greater use of FX products.

LSEG explained that it plans to keep building on the main parts of its trading business while also working to improve how its platform runs. The company shared that it wants to help more clients use its services without stress, by allowing them to access trading tools and services easily. It also said it will focus on helping clients who trade large amounts in different areas like currencies, stocks, and other markets.

The company shared that one reason for its strong performance was the reliable platform it has built over time. According to LSEG, its technology helped meet client needs, especially during times when the market was not steady. It said it was able to give clients a calm and safe space to trade, even when the market felt uncertain.