Cboe FX Markets stands as an institutional spot forex trading venue of note. Recently, the venue had published its trading volumes for the month of December. Through this, it can be seen that the venue saw a slump in trading demand, month over month, for 2020’s final month. However, when viewed on a yearly yardstick, it shows a positive uptrend. With the year-end holidays, it’s a common trend among FX markets that December gives lesser numbers, with the higher yearly numbers showing a solid uptrend.

Lesser Numbers Compared To November

Giving a brief analysis of the daily volumes experienced in Cboe’s spot FX space, it’s clear that December 2020’s volumes saw a drastic drop in demand within the last week of December. The need for institutional forex saw its peak on the 21st of December, 2020, going up to $42.58 billion, but Christmas eve saw these daily values go down as low as $14.68 billion.

The total trading volumes show a similar trend of November 2020 holding more demand, with December 2020’s total volumes dropping by 8.9%, going down to $719 billion as opposed to November’s $789.05 billion.

Some Smaller Details

The average daily volume (ADV) for December 2020 at Cboe’s FX venue had gone down to $32.69 billion in total. By contrast, the ADV of November was recorded at $37.57 billion. Something to make a note of, however, is that December boasted a total of 22 trading days, with November only recording 21. It’s clear that no one but the most dedicated traders is willing to work come Christmas.

Year On Year Sees Significant Increase In Demand

However, the real positive light only shines once you compare Cboe’s December 2020 volumes with that of December 2019. December of 2019 recorded a total FX volume of $628.11 billion. Comparing this to December of 2020, it’s clear that the forex demand within the platform had seen a 14.45% rise year-on-year.

Quarterly figures show positive trends, as well. The year of 2020 was volatile, to say the least, but Q4 2020 for Cboe was only beaten by Q1 2020 in terms of volumes. Q1 2020 will go down in the history books, however, thanks to the massive spike of volatility and volume caused by the COVID-19 pandemic. In the month of March, Cbow had managed to breach past the trillion-dollar mark in trading volumes, spurred by the pandemic and the chaos it brought to the world.

As for the ADV number on a quarterly basis, Q4 2020 saw an ADV of $30.07 billion, which is the same as Q4 2019’s. With this, the uptrend within the FX industry is made clear as day.