FX volumes rising nicely, but have a long way to go.
As we have seen with other FX product aggregators such as Thomson Reuters and the CME Group, volumes at Forex ECN ICAP-EBS saw a nice double-digit-percentage rise in September, but remain well below “normal” levels seen throughout last year.
EBS’s volumes rose by 17% in September to $111.9 billion per day, up from August’s $95.5 billion, yet remained down 39% from last September’s $183 billion. Indeed, in most months during 2011 EBS’s volumes topped $150 billion daily, as per the chart below. EBS has not gotten anywhere near that level so far in 2012.
We are seeing a very clear pattern that September industry FX volumes were well improved over July and August, as volatility picked up post Labor Day in the currency markets, but volumes have not yet returned to last year’s levels. And, as margin compression continues, the FX industry is becoming less profitable for both money makers and agency firms alike.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.