CME Group’s EBS Spot FX's ADNV Slumps -12% to $67B in October

The average daily notional value (ADNV) of spot forex trading on the Chicago Mercantile Exchange (CME) Group's Electronic Broking Service (EBS) declined by -12% in October.

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The ADVN slumped from $76.3 billion in September to $67 billion last month.

However, the ADNV jumped 15% year-over-year, CME Group disclosed in its October 2022 market statistics shared with Finance Magnates on Wednesday.

Furthermore, CME Group disclosed that its total EBS volumes shot up by 30% month-over-month (MoM) when compared to its August 2022 figures. The total EBS volumes also jumped 31% year-over-year (YoY) in September when compared to September 2021.

This is even as the CME Group recently reported solid third-quarter profits boosted by 26% in trading volumes.

“EBS Market has seen strong overall performance in September vs. both the prior month and September 2021, continuing to reflect the value and role of the primary market central limit order book in managing risk in more volatile and uncertain market conditions,” Jeff Ward, Global Head of EBS, explained.

Shrinking Spot Forex Market？

The drop in EBS spot forex ADNV is in line with the October slump in ADV volumes among top institutional spot forex venues, as observed by Finance Magnates.

For instance, Cboe FXs ADV dropped almost -7% MoM to $42.6 billion in October 2022. Its total monthly volume also declined -11.1% MoM to about $896 billion.

Furthermore, Deutsche Börse‘s 360T reported an over -13% ADV decline in October. The top European spot FX trading venue’s ADV came in at $23.7 billion, with the total monthly volume reaching $499.3 billion.

Similarly, FXSpotStream LLC posted a -5.8% monthly ADV decline last month.

The provider of multibank FX aggregation services for spot FX trading said its total monthly trading volume reached over $1.45 trillion in October, with over $69.1 billion in ADV.

Meanwhile, despite the monthly ADV drops, Finance Magnates observed that the institutional spot forex trading venues' ADV came in stronger when compared year-over-year.

'Strong' FX Futures and Options

In October, the ADV of forex futures and options traded on CME Global increased by 42% and 20% year-over-year, respectively.

This is a continuation of “the strong performance” recorded in September when the FX futures and options volumes hit an -all-time high.

“Volumes continue to be supported by heightened FX volatility levels and increased customer adoption as exhibited by the growth in open interest and buy-side Large Open Interest Holders (LOIH),” Paul Houston, Global Head of FX at CME Group, explained.

Rising Volumes on CME FX Link

Furthermore, volumes on FX Link, a venue that enables a seamless connection between the FX futures contract and the over-the-counter FX marketplaces, shot up by 150% compared to October 2021.

The ADV of the CME FX Link also jumped 104% year-to-date when compared to the same period last year, CME Group noted.

“Volumes in MXN/USD on FX Link also set a monthly record in October, with a new single-day record of 16,988 contracts on 25 October,” Houston said.

Earlier in September, FX Link posted an all-time monthly volume record of 47,000 contracts.

‘Highest-ever October ADV’

Across all asset classes, CME Groups ADV increased by 11% to 22.7 million contracts last month, “the highest-ever October ADV” recorded by the company.

On a year-over-year basis, the Groups foreign exchange ADV shot up by 42% to 1 million contracts.

On the other hand, while the equity index ADV increased by 59% to 8.5 million contracts, options ADV jumped 20% to 4.5 million contracts.

Among other asset classes, CME Groups interest rate ADV reached 9.8 million in October while the cryptocurrency ADV improved by 6%.