Refinitiv, formerly the finance and risk arm of Thomson Reuters, today reported that its main foreign exchange trading service had $424 billion in average daily trading volume (ADV) for foreign exchange transactions last month.
August’s ADV figure was the lowest in three months since currency trading volumes bottomed out in May.
Forex trading volume across Refinitiv Matching and FXall platforms decreased 3% on a monthly basis from $436 billion in July 2023. However, this number was a 2.7% increase from $413 billion in August 2022.
Refinitiv, which is still partly owned by Thomson Reuters, reported spot FX trading volume of $88 billion, down 10% on a monthly basis compared to $99 billion in July. On an annual basis, spot sales managed to exceed the $86 billion in August 2022.
Slower activity in other trade types such as futures, swaps, options and non-deliverable forwards (NDFs) contributed to the monthly decline. This averaged $336 billion per day, down from $338 billion the previous month.
Refinitiv’s numbers reflect a trend observed in the monthly numbers of many major trading platforms, where activity has turned lackluster after posting record volumes in the first half of the year.
Refinitiv’s FX business offers a variety of products and services to institutional investors, including pricing and analytical tools, trading platforms, and post-trade solutions. Its flagship product, Refinitiv FXall, is a leading electronic trading platform that connects customers with his over 1,800 liquidity providers and allows them to execute trades in over 150 currencies. The platform offers a wide range of trading options including spot, forwards, swaps and non-deliverable forwards (NDF), and provides users with real-time market data and analysis.
In addition to its trading platform, Refinitiv’s FX business also offers a suite of analytical tools and data services, including Refinitiv Eikon, which provides real-time news, market data and analysis, and Refinitiv Dealing, an interbank trading platform. Depending on business model and market conditions, Refinitiv Elektron provides partners with an ultra-low latency order routing and pricing engine, and also gives financial institutions the opportunity to connect to a wide range of liquidity providers. It includes cross-asset market and price data, delivering 9 million price updates per second across 84 million products and 2.5 terabytes of real-time prices every day.
