Thomson Reuters FX dealing volumes slump

The average daily volume traded last month was $115 billion, down from $166 billion in August last year. Volumes were also down 11 per cent from the $130 billion recorded in July, company data showed on Wednesday.

Although August is traditionally a quiet month in foreign exchange markets Reuters said the sharp fall in volumes suggested traders are seeking alternatives to the two primary interbank dealing platforms, Thomson Reuters and EBS, which is owned by interdealer broker ICAP. Market players told Reuters that low volatility in the currency markets, in part stemming from uncertainty over how policymakers plan to tackle the euro zone crisis, was also weighing on volumes.

Average daily spot volumes on EBS in July were down 41 per cent from the same time a year earlier, latest data from its website showed. ■