CME Group’s October FX volumes lowest since 2009

First indication that October was slow in the FX trading world.

CME Group, which runs the world’s largest derivatives marketplace, announced that FX contract volumes (mainly Eurodollar futures contracts) in its system were down by 32% in October from September to an average of 702,000 contracts daily. October’s volumes were also 23% below last year’s October levels, and also represents CME’s slowest month for FX since August 2009.

While CME’s reported volumes are futures contracts, they typically are a good predictor of retail / spot volumes as well. Those markets are interconnected, and are typically driven by the same catalyst — namely volatility.

In the LeapRate Retail FX Volume Index, sponsored by Leverate, September FX volumes were up 7% globally following a (very) slow summer. But unless CME’s low October volumes end up being a poor predictor of activity in the spot FX world (they are rarely wrong), it looks like volumes are indeed back down. We should learn more when Forex ECNs such as ICAP, Hotspot FX, and Thomson Reuters release August numbers in the coming days and weeks Stay tuned…

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

Read Also:

LeapRate is an independent research and advisory firm, specialized in covering the world of Forex trading. We are followed by hundreds of thousands of traders, investors and other FX industry participants via our website, Facebook, Twitter, LinkedIn, RSS and Email Newsletter. Copyright © All rights reserved Finaffiliates Limited Website:
https://finaffiliates.com CEO: Jason Hopgood Company number: 14540579 VAT identification number: GB 431522433

Location: Finaffiliates Limited, Lawrence House, 5 St. Andrews Hill, Norwich NR2 1AD, United Kingdom
Email: [email protected]

SUBSCRIBE TO OUR NEWSLETTER

IMPORTANT DISCLAIMERS

Foreign exchange trading comes with high level of risk. Before investing in foreign exchange, carefully consider your level of experience and risk appetite. CFDs are complex instruments and bring high risk of losing money because of the leverage they provide. No information or opinion contained on this site should be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. Past performance should not be considered evidence or guarantee for future performance. Between 74 and 89% of retail investors accounts lose money.