FX volumes on the up at KCG during June, whilst other asset classes decline

KCG Holdings, Inc. (NYSE: KCG) today released trade volumes for the month of June 2014.

In Market Making, KCG averaged $23.5 billion dollar volume traded, 8.2 billion shares traded, and 3.4 million trades per day in U.S. equities, representing a reduction in volumes from those achieved during May this year.

In May, the company’s market making activities were $0.6 billion higher, standing at $24.1 billion, than those achieved during June, therefore holding KCG out as a firm whose results for June are contrary to some of its peers as a number of firms across the institutional and retail electronic trading industry have made slight increases in volumes during last month.

In Global Execution Services, agency-based algorithmic and EMS trade volumes through Knight Direct and GETAlpha averaged an aggregate 248.0 million shares traded per day in U.S. equities

As LeapRate reported earlier this month, KCG’s institutional ECN, Hotspot, averaged $27.5 billion per day in notional foreign exchange dollar volume which is $1.6 billion higher than May’s figures, a result which aligns itself with LeapRate’s bullish prediction for FX trading in June, and stands out as the only asset class which provided an increase in monthly revenues for the entire KCG group during June.

As of last month, KCG took the initiative to list its Hotspot FX volumes separately, perhaps hinting at future merger and acquisition activity, but has so far taken the long term view in hanging onto its FX ECN, which may well prove to have been a prudent decision. The publication of detailed FX metrics may attract a purchaser in time, however.

KCG BondPoint averaged $129.4 million per day in fixed income par value, compared to May’s $130.7 million per day.

As for the overall market conditions in June, consolidated U.S. equity volume averaged $227.3 billion in dollar volume and 5.8 billion shares traded per day. The realized volatility for the S&P 500 was 5.9.

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