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Screenshot of a breaking news alert e-mail from Q2 2017
The road to recovery is not always a speedy one, however with KCG Hotspot’s recent commencement of reporting the trading volume specific to the FX ECN division of KCG Holdings comes an indication toward moving away from the industry-wide doldrums that have prevailed this year so far.
KCG Hotspot’s trading volume for June this year stood at $27.5 billion in average daily volume (ADV), some 6.4% above May’s $25.9 billion.
This particular dynamic reflects LeapRate’s prediction that June would be a healthier month for both institutional and retail FX trading, based on increased volatility and increase in bullish optimism from traders.
June’s results represent a step in the right direction for KCG Hotspot, a division of KCG Holdings upon which its parent company has taken a long term view by retaining it as a going concern rather than offloading it, despite KCG Holdings’ own challenges initiated by the infamous 2012 trading incident and subsequent purchase by GETCO, demonstrating a two year period in which the company completely resolved the matter and restored itself to full fiscal health, well ahead of initial expectations.
Despite the increase in ADV compared with May this year, it is worthy of note that the volume figures still remain well below the $30 billion ADV that the company reported during several consecutive months earlier this year and in the second quarter of last year, which was a period of all round success for many firms worldwide.