Cboe’s spot
platform processed $1.07 billion in total December volumes with average daily
turnover of $48.6 billion across 22 trading sessions, slipping 2.3% from
November’s $49.6 billion daily pace but still up 18.5% from December 2024’s
$41.0 billion.
The
pullback marked the first monthly decline since August and came as currency
volatility subsided following the Federal Reserve’s December rate decision.
FXSpotStream’s
institutional ECN saw sharper deceleration, with total average daily volume
falling to $123.1 billion from November’s $125.0 billion, though the figure
remained 34% above December 2024’s $92.1 billion.
CLS Group,
which settles the bulk of institutional FX transactions, reported average daily
volumes of $2.38 trillion in December, up 17% year-over-year. The settlement
giant saw spot volumes rise 8.9%, FX swaps increase 19.2%, and forwards jump
25.2% compared to December 2024.
European Platforms Close
Strong Year
Deutsche
Börse’s 360T platform posted December volumes of $741.2 billion with average
daily turnover of $32.2 billion, maintaining steady activity levels despite
reduced volatility in euro crosses. Euronext FX processed $481.5 billion in
total monthly volumes with daily averages reaching $30.1 billion.
The
European venues benefited from year-end rebalancing flows and corporate hedging
activity, though trading remained below October’s three-month highs when dollar
volatility drove activity across major platforms.
Tokyo
Financial Exchange’s Click 365 retail-focused platform recorded 1.58 million
contracts in December with daily averages of 68,736, down 0.7% from November
but up 3% year-over-year. The yen-denominated platform continued to recover
from mid-year lows as Japanese retail traders returned to currency markets.
Full-Year Picture Shows
Broad Gains
For
calendar 2025, Cboe FX reported record annual spot volumes with average daily
notional reaching $49.7 billion, surpassing 2024’s record of $45.4 billion by
roughly 9.5%. The Chicago-based venue benefited from heightened currency
volatility tied to Federal Reserve policy shifts and geopolitical uncertainty
that drove strong
performance throughout
the year.
Institutional
traders faced a choppy environment in late 2025 as central banks diverged on
policy paths. The Fed delivered three quarter-point rate cuts between September
and December while the European Central Bank held rates steady through
year-end, creating trading opportunities in major crosses that sustained
activity levels well above historical norms.
The
December slowdown suggested some institutional desks reduced risk ahead of
year-end, a typical pattern as banks lock in annual profits and hedge fund
managers close positions. Trading volumes typically rebound in January as new
capital enters the market and macro positioning resumes.
This article was written by Damian Chmiel at www.financemagnates.com.
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