The CME (Chicago Mercantile Exchange) Group recently published its Monthly Market Statistics report for November 2022, featuring some interesting data. According to the report, the Electronic Broking Service (EBS) saw a growth rate of only 0.3% in spot forex trading last month, meaning that the growth rate was near-flat. It generated $67.2 billion in ADNV (Average Daily Notional Value), after seeing $67 billion previously in October.
While the increase is minor following the situation in October, it also represents a 12% decline from the amount generated in September, which was $76.3 billion.
The derivative marketplace operator noted that the EBS volumes may be flat on a month-over-month basis, but the situation looks significantly better on a year-over-year basis. In this case, the returns are 7.5% higher.
CME Group also said that volumes on the EBS Direct Spot and EBS Market were also flat during last month, with the situation once again changing on a yearly basis, where the EBS Market saw an 11% growth. The Global Head of EBS, Jeff Ward, commented on the report saying that CNH and NDFs on EBS Market were strong in their YoY and MoM performance in November, going up by 39% and 45% YoY, respectively. Meanwhile, both recorded a 7% surge compared to October 2022.
Different FX outcomes in November throughout the industry
Interestingly enough, trading venues noted differing outcomes for November of this year all over the industry. For example, Moscow Exchange said that it recorded forex volume returning flat last month, while Denmark’s Saxo Bank said that it saw a surge of 7.8% in forex trading.
There were even reports of declines, such as the one provided by FXSpotStream LLC, which provides multibank forex aggregation services for spot FX trading. According to its report, November saw a 2.7% drop compared to the figures from October.
CME Group’s own Global Head of FX, Paul Houston, commented on the forex situation noting that the FX futures and options volume at CME Group has continued the strong YTD growth trend throughout November.
Additionally, the Group noted a 16% surge for forex ADV YoY, in terms of contracts. The average open interest in forex products listed on CME Group also saw a YTD increase of around 14% compared to the same period last year.
Overall, the Group saw a similar performance of FX products to the output in October. Back then, the volume of both futures and options went up by 42% and 20% year-over-year, respectively, marking an increase from September’s all-time high. The November performance is presumably driven by the increased volatility and buy-side customer adoption, which are signaled by the growth in positions held by asset manager LOIH (Large Open Interest Holders).