Spot FX Institutional Volumes Show Mixed Investor Sentiment In July 2023
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The trading activities across the spot foreign exchange market among institutional investors have posted mixed results in July 2023. Trading platforms posted varying results, which does not clarify investor sentiment.
Spot FX institutional volumes show mixed sentiments in July
Some leading platforms, such as Cboe FX, Deutsche Borse’s 360T, Click 365, and FXSpotStream, posted varying results during the month. In the US, Cboe FX, one of the leading Spot FX trading platforms, posted total volumes of $922 billion, representing a 4% drop from the $965 billion posted in June 2023.
The average daily volumes for spot FX trades on the platform also posted a marginal increase of 0.01% to $43.9 billion, representing a gain from the $43.8 billion posted during the previous month.
In early June, the Spot FX trading activities recorded on Cboe FX increased by $30 billion to $965.4 billion. The average daily volumes reported by Cboe FX on the platform increased by $3 billion compared to the previous month. The ADV posted in July 2023 was the highest value that the company attained since March 2023.
FXSpotStream, a provider of multi-bank streaming services based in New Jersey, posted results that mirrored those of Cboe FX during the month. FXSpotStream deals in FX spot and swaps.
The total spot FX volumes posted by the platform dropped by 1.2% to $1.37 trillion, a drop from the $1.39 trillion posted the previous year. On the other hand, the average daily volumes for the streaming service provider increased by 3.3% from the $629 billion posted in June to hit $63.1 billion.
European trading venues post mixed results
While the trading data posted across the US showed mixed results, some European trading venues recorded higher results in July. 360T, one of the leading trading platforms targeting institutional traders, also recorded an increase in the total monthly spot volumes.
The daily volumes the company posted reached $612.6 billion at the end of July, representing a 14% increase from the $591 billion posted in June 2023. This showed that investor sentiment had shifted toward the positive side.
On the other hand, the Euronext FX trading venue, a leading electronic communications network dealing with Spot FX trading in Europe, recorded a 4% decline in activities to $492 billion.
The Euronext FX platform operated by Euronext also posted a decline in institutional demands, with the trading volumes declining from the $514 billion posted the previous month.
The FX volumes across Asia also failed to produce significant results. On the Click 365 platform, 2,586,333 daily futures contracts were recorded in July 2023, a 6% increase compared to the previous month. The figure also represented a 7.9% year-over-year drop in the total monthly volumes. The trading platform also posted daily average volumes of 123,162 contracts.
