Ebola-driven market volatility leads to record FX trading volumes on several platforms

Most certainly, October 15 this year has been marked by the astronomical trading volumes across many institutional platforms and venues, culminating in Hotspot FX, KCG’s venerable ECN having joined the ranks of two of North America’s most prominent exchanges in experiencing record daily volume figures.

On October 15, total trading at Hotspot amounted to $59.4 billion, surpassing the previous daily record which was set by the company on September 4, at the beginning of a time at which the entire industry was hoisting itself out of a prolonged period of doldrums.

In terms of the effect which global geopolitical events can have on trading activity, Hotspot’s previous record was paritally attributed to an announcement by the ECB that it was cutting rates, causing just a 1%+ drop in the Euro against major currencies, which in turn resulted in a spike in trading volumes.

In the case of the most recent, and perhaps most dramatic upturn in volumes in recent times across many firms, market volatility has been affected by the media attention which the Ebola virus is receiving and the effect on global economies.

Hotspot’s FX volumes are a further example of this, with major venues ICE and CME Group having experienced a similar dynamic on the same day.


 Chart courtesy of Market Watch

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