Thomson Reuters FX trading volume falls 23%

The average daily volume traded was $120 billion, down from $155 billion in October 2011 and $133 billion in September.

Trading volumes at rival interbank dealing platform EBS also declined in October. Data released on Wednesday showed its average daily foreign exchange spot volume dropped 46 per cent from year-ago levels to $92.6 billion.

Market players said low volatility in the currency markets was weighing on trading volumes. Frustration with high-speed computer algorithms operating on the major dealing platforms also contributed to the decline.

Thomson Reuters has started to publish volumes on FXall after completing the purchase of the electronic foreign exchange platform in August. Average daily volumes at FXall rose to $94 billion in October from $86 billion a year ago. ■