Thomson Reuters (-22%) and FXall (-17%) see forex volumes fall in July

However on a relative basis both did much better than Forex ECN rival EBS. But why?

After setting volume records in June, Thomson Reuters FX and its still-separately-run subsidiary FXall reported forex volume slowdowns in July. Thomson Reuters FX came in at $114 billion daily in July, off 22% from June’s $147 billion, and FXall recorded average daily forex volumes of $102 billion in July, down 13% from its $123 billion record in June.

We should note that Thomson Reuters and FXall’s main rival, ICAP’s EBS unit saw volumes drop 31% in July to $89 billion daily to record its worst month since 2005. The decrease in July volumes at FXall and Thomson Reuters was not nearly as drastic — July was still a Top-10-best-ever-month for FXall.

Why are Thomson Reuters / FXall faring better than EBS? Reuters makes an interesting note that EBS is the leading liquidity provider for the Euro, the Yen and the Swiss Franc, while Thomson Reuters platforms provide better liquidity for other currencies like the British Pound and the Australian and Canadian Dollars. With Yen volatility cooling off a bit in July, it somewhat explains why EBS slowed more than Thomson Reuters or FXall.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.


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