Cboe Reports Recovery in May’s FX Demand

After a decline in demand in April, Cboe FX Markets reported the monthly trading figures for May 2020, showing a marginal recovery in overall trading demand and average daily volumes (ADV).

The institutional forex trading venue reported a total monthly volume of more than $683 billion, which is up from the previous month’s volume of $677 billion. That was a month-on-month uptick of only 0.8 percent, but still in the positive trajectory.

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The ADV for the month came in at $32.5 billion, compared to $30.7 billion recorded in April. May had 21 trading days, while markets remained open for 22 days in the previous month.

Per the daily spot volumes, trading demand remained the highest on May 7 with a daily volume of over $43.2 billion, but the last day of the month reported the lowest as only $16.2 billion in FX changed hands.

The Market Trend Continues

Cboe FX Market remained one of the largest spot institutional trading platforms for forex. It reported an impressive gain in the first quarter of this year as the demand for the year peaked in March with ADV of more than $38.2 billion. However, the figures plummeted in April as demand saw a massive correction.

But, this trend of a trading spike in the first quarter of every year and then a sharp correction in the second quarter can be observed in the past few years.

Being a top futures trading venue in the United States, Cboe is increasing the range of its products. It is considering relaunching Bitcoin futures instruments, which it first started to offer in December 2017 but discontinued after several months. Furthermore, Cboe BZX Exchange has partnered with several companies willing to issue a Bitcoin ETF in the US but is still waiting for regulatory approvals.

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