September 2015 Forex Industry Metrics: Down But Not Out!

September forex trading volumes were mostly lower compared to the previous months as market volatility subsided. Traders typically thrive in volatility since quick price moves offer more opportunities to make profits, but the forex market had Green Day’s “Wake Me Up When September Ends” on loop last month.

Unlike in July and August, Chinese equity troubles didn’t hog the spotlight in September, leaving market watchers to dwell on the uncertainties surrounding the major central banks’ monetary policy biases. Several exchanges reported declines in trading volumes among U.S. dollar pairs, with investors playing it safe ahead of the September FOMC statement.

Electronic trading platform EBS reported an 11% monthly decline in average daily volume (ADV) to $89.4 billion in September, amounting to a 24% drop on a year-over-year basis. In the Tokyo Financial Exchange, data from Click365 indicated a 9.8% monthly decline in the total number of contracts traded, with a 13.9% drop in average daily volume.

Forex brokers HotspotFX and FastMatch also reported a downturn in trading activity for September, with the former printing a 3.5% dip in ADV and the latter showing a 14.7% tumble. CME Group noted an 18% year-over-year decrease in September trading volumes but reported a 7% quarterly increase in the number of contracts for Q3 2015 compared to the same period last year.

Surprisingly, Russia saw a pickup in trading activity, with the Moscow Exchange indicating a 9.1% increase in its total FX market turnover last month. This marked a whopping 84.7% jump from its turnover figures from a year ago. September’s average daily turnover also recorded a 4.1% monthly gain to $23.5 billion, up by 94.4% from September 2014’s figures.

TFX Forex Pairs Volume

Data from Tokyo Financial Exchange

In terms of currency pairs traded, Tokyo Financial Exchange revealed mostly double-digit declines across the board, except for GBP/JPY which saw a 28.9% increase in trading volume from the previous month.

Do you think we’ll see a pickup in trading metrics for the last stretch of 2015? Are there any market uncertainties that could keep volatility in check? Let’s get the discussion going in the comments section below!