Cboe Global Markets, Inc. (Nasdaq: CBOE) today announced its foreign exchange (FX) market, Cboe FX, reported record market share of 14.5% in October, surpassing its previous record of 13.6% set in December 2013. Year-over-year, Cboe FX ADV increased 26.7% to $32.0 billion in October.
The record performance was driven by a number of factors, including increased volumes from European and Asian customers as the company continues to enhance its offering and expand its customer base around the globe. Cboe FX’s London matching engine, launched in September 2015 to better serve the London and Asian markets and the specific FX currency pairs that dominate the European and Asian trading hours, has nearly doubled its volume this year with ADV traded in October exceeding $4.8 billion, its second-best month on record. The London matching engine now accounts for more than 15% of Cboe FX volume, up from 8% in the fourth quarter of 2016.
Growth in Cboe FX’s Asian trading session has increased 30% year-on-year. Additionally, volume in CNH (Chinese renminbi) exceeded 2.25% of volume on Cboe FX in October, a new record. Cboe FX’s Asian trading session is on pace for its highest annual ADV, with year-to-date ADV standing at $4.6 billion.
Bryan Harkins, Head of U.S. Equities and Global FX at Cboe, said:
Our record month in October was really a testament to the efforts we’re putting forth to meet the needs of our expanding customer base across Europe and Asia. Our growing market share is an indication that customers are beginning to see the benefits of our investment in analytics and liquidity management, and we plan to continue to proactively partner with them to improve their trading experience.
Cboe FX is coupling quantitative metrics with qualitative FX knowledge to proactively increase matches on the platform.
Using a proprietary suite of analytics, the Cboe FX team works with clients to construct pools of liquidity to help fulfill client-driven execution goals. Cboe FX’s dedicated liquidity team is in contact with clients to gather feedback as to how their curated liquidity can be further optimized.