It was not ‘Black Thursday’ for everyone in the Forex industry.
In fact, for those companies such as ECNs which make their living solely off of volumes, it was a very good day.
Hotspot FX has reported that FX trading volume metrics reached $61.7 billion last Thursday January 15 – its best ever day based on our records. Hotspot’s previous best day came back in early September 2014 in the wake of the ECB’s surprise rate cut and ECB Chairman Mario Draghi’s remarks on quantitative easing, which sent the Euro tumbling. Hotspot saw $56.0 billion traded on September 4.
As per above, Hotspot followed up Thursday’s $61.7 billion with a strong Friday at $46.9 billion. Hotspot normally averages in the mid-$30B per day range. And we would expect strong volumes to continue into the coming week, despite the US markets’ closure for MLK Jr. Day on Monday, as currency markets remain unsettled and are likely to see more volatility in the near term.
Hotspot FX seems to have chosen a good time to hit high stride, with owner KCG actively looking to sell the company. We recently reported that exchange operator BATS Global Markets may be in discussions to buy Hotspot.