A busy month in the foreign exchange market, sparked by a financial crisis that caused the exit of many forex positions, allowed FXMarketSpace to average more than $1 billion worth of volume per day in August.
The joint venture between Reuters and the Chicago Mercantile Exchange (CME) had an average daily volume of $1.09 billion per day, more than doubling July’s average volume and continuing an upward volume trend that was temporarily halted in July.
July average daily volume was only $540 million, a big dropoff from June’s average of $990 million. However, average volume has tripled since April, MarketSpace’s first full month, when the venture averaged just more than $330 million per day.
The euro/U.S. dollar pair (EUR/USD) has been the most popular on MarketSpace, averaging more than $290 million per day in August and $220 million per day since trading began. In August, though, the euro/Japanese yen pair (EUR/JPY) accounted for almost half of MarketSpace’s volume, as carry trade concerns pushed volume for the pair to an average of $497 million per day.
Since April, the euro/yen has averaged $181.8 million per day. The U.S. dollar/Japanese yen ($103.2 million), U.S. dollar/Swiss franc ($70.4 million), and British pound/U.S. dollar ($67.6 million) round out the top five in average daily trading volume since April.
While MarketSpace has made significant gains in volume, it’s still a long way from the top. EBS, one of the busiest forex trading systems, set a record on Aug. 16 when it handled $456 billion worth of trades. Its average daily volume is about $155 billion.
FXMarketSpace has customers in 28 countries and allows clients to trade in the spot forex market on an exchange platform. Generally, spot forex transactions occur in the unregulated interbank market.
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