Three seems to be the magic number when it comes to Brexit. Or more specifically, the effect that the Brexit vote result had on FX trading volumes.
After seeing a similar three-times-normal volumes result reported for Friday at institutional eFX platforms FastMatch and the Hotspot FX unit of Bats Global Markets Inc (BATS:BATS), industry leader Thomson Reuters has announced that Spot FX trading in on its platforms jumped by three times last Friday, amid sharp swings in the British pound and other major currency pairs after Britain voted to leave the European Union.
Spot FX volumes on Thomson Reuters platforms hit $258 billion Friday, compared to a daily average of $94 billion seen in May.
Total volumes of all currency trading, including derivatives and other instruments, also hit a high of $482 billion on Friday at Thomson Reuters, up from May’s average of $347 billion as sterling posted its worst day in the era of free floating exchange rates.
“The volumes illustrate the importance of neutral venues like Thomson Reuters on busy days when price determination is mission critical,” according to a Thomson Reuters spokesperson.