November 2015 Forex Industry Metrics: Another Road Bump?

The retail forex industry seems to be struggling to get back on its feet after a shaky October, with most market players across the globe reporting weaker metrics. What’s up with that?!

CME Group, an international derivatives marketplace spanning products like interest rate securities, FX, equity indices, and commodities, reported a 3% decline in monthly forex trading volumes for November. On a year-over-year basis, this translates to a whopping 23% decline. To top it off, the average notional value of FX contracts in November stood at $72 billion, down from the previous month’s $75 billion.

In Asia, the Tokyo Financial Exchange chalked up its third consecutive monthly decline in forex volumes, posting a 20.2% drop for November. Compared to the same month last year, this amounts to a dismal 41.4% reduction. Interestingly enough, CHF/JPY was the most actively traded pair during the month, registering a jaw-dropping 181% jump in TFX trading volumes then. GBP/USD enjoyed a 66.6% pickup in activity while EUR/USD and CAD/JPY posted more than 40% declines in volumes.

forex volumes

Data from Tokyo Financial Exchange

EBS, which is the electronic forex trading platform used by market-makers, showed that November daily trading volumes dipped to $75.5 billion – its lowest level since July 2014. Thomson Reuters also reported record-low trading activity for November, which marked a 13.5% monthly decline and a 25% year-over-year drop.

Meanwhile, Monex Group showed a 19.9% monthly decrease in November 2015 global forex trading volumes, which is equivalent to a 59.4% tumble from November 2014. In Russia, the Moscow Exchange indicated a 22.8% decline in turnover from 30.7 trillion RBU in October to 23.7 trillion RUB in November. However, this was still 26.6% higher compared to the same period last year.

There were a few bright spots among some exchanges and forex brokers though, as Intercontinental Exchange Inc. (ICE), which is an international operator of exchanges and clearing houses, saw a decent 6% monthly increase in forex volumes. Broker Saxo Bank reported a 5% gain in daily trading volumes for November while client deposits picked up by 1.5% to $11.41 billion.

Other forex brokers didn’t fare so well, with GMO Click reporting a whopping 21.8% month-over-month decline in volumes, Hotspot showing a 6.6% drop, and EXNESS indicating a 12% tumble.

Any ideas on what’s causing this downturn in forex industry volumes? Do you think we’ll see a rebound this December? Don’t be shy to share your thoughts in our comments section below!

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