Currency trading at a good level again. Turnover increases in December.

Despite the fact that in December we had quite a few days without trading on the stock exchanges and exchanges in limited hours, this did not affect the volume negatively. November, weak in terms of turnover (not only in terms of m / m, but above all in annual terms) has long been forgotten. The vast majority of brokers and liquidity providers, December may be included in good, commercially active months. Let's look at the results of major financial institutions in terms of market turnover.

December reflection

The last month of 2019 turned out to be very fruitful for liquidity providers. After poor November readings of the volume, December largely "evened out" the annual result. GMO Click is one of the first companies to publish turnover data. On a monthly basis, an increase of 4,6% was recorded. However, to have a broader picture of the situation, it is worth comparing the publications to those of December 2018.

The result does not look so colorful anymore. In fact, trading volume dropped by 12,3 percent, from USD 554,9 billion in currency trading on the OTC market. The whole year 2019 was a difficult time for most brokers who were plagued by low volatility. The improvement in December was largely the result of poor November readings.

Be sure to read: There has been no such weak monthly volume since 2016.

10,7% better

After reporting the worst monthly currency volumes in November 2019, Saxo Bank recently provided its data for the last month of last year. They do not stand out significantly from the others, but they are significantly better. December despite a large number of days off and a smaller number of participants involved in the market (holiday period) recorded an increase in m / m of 10,7%. Giving this result strictly numerically, in November it amounted to USD 107,4 billion, while in December exactly USD 118,9 billion, similar to August 2019.

Volume in December 2019. Source: Saxo Bank

Trading on the Forex market generates the largest volumes. Although turnover in December is higher compared to the previous month, it is still significantly lower than USD 147,6 billion from December 2018. Therefore, trade activity is 19,4% lower yoy. The average daily trading volume increased to USD 5,4 billion. We will take November as the benchmark, with an average daily turnover of USD 5,1 billion.

Not all areas of Saxo Bank's business brought him monthly increases. The raw materials market was doing poorly. Trade in goods has deteriorated by almost 12%. In addition to currencies, shares also benefited from better volatility. Their exchange improved by almost 17%.

USD 36,3 billion a day

With similar results, Integral quite recently appeared. The company provides technology (mainly platforms) to banks, brokers and asset management companies. In November 2019, Integral recorded an average daily trading volume of USD 34 billion. This is a decrease compared to October. This was caused by weaker volatility in financial markets, and thus also in institutional currency systems.

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The currently published results provided the company with a 6,8% increase in turnover in m / m terms. During the month, the average daily volumes (ADV) on the company's platforms amounted to USD 36,3 billion. Euronext also presented very similar results.

GBP / USD fueled the growth of the Tokyo Financial Exchange

At the beginning of the year, TFX published numerous turnover data for December 2019. It recorded a healthy increase in m / m terms, which amounted to nearly 15%. The total volume of trading in FX futures contracts via the Click 365 platform was 1 contracts. Converting it to ADV (daily average), this gives us the result of 669 contracts concluded during one session.

Click 365 volume in December 2019. Source: TFX

The currency pair that reported the largest increase in turnover based on both monthly and annual measurement was British pound to US dollar. Trade in this pair increased by a significant 131,1 percent year on month and 51,3 percent year on year.

Click 365 volume in December 2019. Source: TFX

Daily trading in futures contracts on stock indices remained stable. Last month, the total trading volume was 714,685 contracts via Click kabu 365. This is an increase of 7,8% m / m. An increase of 18,9 percent was recorded on an annual basis, which, given its predecessors, is a very good result.

Click 365 volume in December 2019. Source: TFX

For all TFX products, the total trading volume was 2 (ADV) for December 437. Given the number of days off and the holiday season, the data presented above are quite good. We are looking forward to the first publication in the new year. The volumes so far (except for November) seem to be relatively stable, despite the fact that they are several percent worse than two years ago. Given the considerable turmoil in January 817 on the stock exchanges, we hope that turnover readings will be better than December's.