Hotspot FX had the largest April increase of any Forex ECN.

Breaking a trend we saw with its larger rivals, Knight Capital’s Hotspot FX reported that FX volumes rose 12% in April to $29.5 billion (average daily volume). Most of the other Forex ECNs which have reported so far — EBS, FXall and Thomson Reuters, as well as the CME Group’s FX futures division — saw slight declines in April, or at most a single digit percent increase, after what has been for all ECNs a strong start to the year.

Hotspot’s increasing volumes were more in line with the nice April numbers reported by leading retail FX brokers such as FXCM, Alpari, and GMO Click.

Hotspot FX’s parent Knight Capital (NYSE:KCG) is nearing the closing of its acquisition by rival Getco. We expect Getco to look to sell Hotspot FX soon after the deal closes, with estimates of Hotspot FX’s valuation in the $150-200 million range.

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