Cboe FX Markets Reports a Monthly Decline in Trading, but a YoY Demand Increase of 11%

Cboe FX Markets, an institutional venue for spot foreign currency trading, reported a substantial monthly decline in trade volumes in July, presumably due to the summer holidays.

The overall spot FX trading volume in July was $801.9 billion, a decrease from the previous month's total of $873.6 billion. This was a monthly loss of more than 8 percent. The monthly decline occurred after the platform's trade volumes stayed unchanged for two consecutive months.

The average daily trading volume (ADV) for the month with 21 trading days was $38.18 billion, compared to $39.7 billion for the month with 22 trading days. Despite the monthly decline, July demand is higher than April and January of previous year, as well as the whole of 2021.

The amount of spot currency trading on the Cboe has increased by 11.4% over the past year. In July 2021, the platform generated $719 billion, which was much less than the previous month. Furthermore, ADV increased by 16.8 percent from $32.6 billion.

Cboe operates one of the major derivatives exchanges in the United States from its headquarters in Chicago. Moreover, the activity on its spot FX market reflect the mood of institutional traders as a whole. Cboe reported $16.6 million in net revenue for Global FX for the second quarter of 2022, a year-over-year rise of 20 percent. It was driven by an increase in net transaction and clearing costs. However, there was a reduction of around 3 percent compared to the first quarter.

"Activity throughout our ecosystem – cash, data, and derivatives – was solid," stated Cboe Global Markets Chairman and CEO Edward Tilly.