November's Total Institutional FX Spot Trading Volume Jumped MoM

ADV on 360T came in 4.2 percent higher.

Forex trading demand on institutional spot platforms has increased in terms of the total monthly volume for November. Spot FX trading volumes on two top trading venues, Cboe FX and Deutsche Börse's 360T, came in at more than $921 billion and $545 billion, respectively.

Cboe FX, run by one of America's largest derivatives exchange operators, reported an average daily volume (ADV) of $41.8 billion. This figure is below nearly 2 percent from the previous month. However, there was a significant uptick in the number compared year-over-year: it increased by about 19 percent from an ADV of $35.2 billion in November 2021.

Despite a surge in total volume, the monthly drop in the ADV is due to an additional trading day last month compared to the previous one. November had 22 trading days, whereas October had 21.

However, both total monthly volume and the ADV remain significantly below the levels of September when one figure surpassed $1 trillion, and the other came above $45.8 billion.

European Demand

360T, which dominates Europe's institutional spot FX market, reported a total monthly volume of more than $545 billion in November. The platform handled $499.3 billion in trading activities in the previous month. The ADV for November on the European platform came in at over $24.7 billion, which is 4.2 percent higher than the previous month's $23.7 billion.

Unlike Cboe FX, the demand for 360T decreased year-over-year. The total monthly volume on the platform went down by 1.6 percent from $536 billion in November 2021, and the ADV dropped at a similar rate.

Meanwhile, the Japanese forex derivatives market also witnessed a monthly slum in trading activities. Click 365, which Tokyo Financial Exchange operates, handled the exchange of more than 3 million FX derivatives contracts in November. The figure dropped by 16.4 percent month-over-month but marginally increased by 0.3 percent annually.