NEWS
FXSpotStream, the aggregator service of LiquidityMatch LLC, has announced another milestone in its currency trading volumes. In April, the platform achieved a new all-time high average daily volume (ADV) of $91.8 billion, surpassing the previous record set in March at $82.6 billion. This represents an 11% increase month-over-month and a remarkable 66% rise compared to April 2023’s $55.3 billion.
Throughout the first quarter, FXSpotStream maintained an average monthly volume comfortably above $75 billion. The strong start to the year was propelled by heightened trading activity across various venues, driven by a combination of market factors.
The current landscape, marked by geopolitical tensions, has amplified FX hedging trades as investors navigate uncertainties. The resultant high volatility favors FX platforms, as witnessed by increased trading activity. However, prolonged periods of low volatility could pose challenges to these platforms.
FXSpotStream operates as a multibank FX aggregation service for spot FX trading, functioning as a bank-owned consortium facilitating trade routes between clients and liquidity providers. Unlike other multi-dealer platforms such as Hotspot and EBS Markets, which utilize centralized order book systems, FXSpotStream operates on a client-to-bank model, necessitating individual credit relationships between liquidity takers and participating banks.
Given the prevailing market conditions, other institutional FX platforms are also anticipated to report heightened trading activity in the coming periods.
