Fazzaco Weekly Digest: FCA Extends TRR for Crypto Firms; Cboe Global Markets Reports May's Futures ADV; ICE Sees Positive Performance in Trading Metrics in May

Take a look at the latest happenings in this week's news digest from around the forex, fintech and crypto industry. Here are some of the top headlines from this past week.

1. FCA Announces Extension of Temporary Registration Regime for Cryptoasset Firms

The United Kingdom's Financial Conduct Authority (FCA) announced to extend the end date of the Temporary Registrations Regime (TRR) for existing cryptoasset businesses from 9 July 2021 to 31 March 2022.

Established last year, the TRR allows existing cryptoasset firms, which applied for registration before 16 December 2020, and whose applications are still being assessed, to continue trading.

According to the watchdog, a significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications. The extended date allows cryptoasset firms to continue to carry on business whilst the FCA continues with the robust assessment being undertaken.

2. Cboe Global Markets Reports a Surge of 34% on Futures ADV in May 2021

Cboe Global Markets, a leading global exchange operator, recently reported its trading volumes for May 2021. Cboe saw a sharp rise in the average daily volume (ADV) on futures, with 266,400 contracts traded, up 34% on a MoM basis and a spike in index options ADV, with 2 million contracts traded, increasing by 14% compared with the previous month.

The report shows that its ADV for SPX options registered 1,323,600 contracts, which is up 13% from the previous month. ADV in VIX options surged by 21% compared with the previous month, reaching 613,600 contracts. ADV for VIX futures was 245,727 contracts in May, an increase of 32% on a MoM basis. ADV for Mini VIX futures surged 78.43% from the previous month, reaching 18,200 contracts traded.   

Its global forex ADNV (Average Daily Notional Value) reached $32.8 billion, up by 5.80% from the previous month.

3. Intercontinental Exchange Sees Positive Performance in Trading Metrics in May

Atlanta-headquartered futures exchange, Intercontinental Exchange (ICE) recently posted its trading volume and other related revenue statistics for the month of May 2021, showing a steep rise in many financial metrics on a YoY basis.

Key highlights in May 2021:

Total average daily volume (ADV) up 8% y/y and total open interest (OI) up 9% y/y including record OI of 84.7M lots on May 24

Total Oil ADV up 6% y/y

· Brent ADV up 12% y/y

· WTI ADV up 24% y/y

· Gasoil OI up 25% y/y

· Other crude and refined products ADV up 5% y/y

TTF gas ADV up 30% y/y; TTF futures OI up 21% y/y including record TTF futures OI of 1.9M lots on May 26

JKM ADV up 16% y/y; OI up 9% y/y

Environmentals ADV up 75% y/y; OI up 14% y/y

Cocoa ADV up 30% y/y

Coffee ADV up 19% y/y

Total Interest Rate ADV up 27% y/y; OI up 33% y/y

· Sterling OI up 58% y/y

· Euribor ADV up 45% y/y

· Gilt ADV up 29% y/y; OI up 34% y/y

· SONIA ADV up 130% y/y; OI up 469% y/y including record OI of 315k contracts on May 24

FTSE ADV up 6% y/y; OI up 7% y/y

U.S. Equity Options ADV up 30% y/y

4. SIX Records 14.8% MoM Drop in Trading Turnover During May 2021​

Fazzaco learned that SIX, Swiss financial markets infrastructure operator, announced its trading volume for May 2021.

According to the press release, trading turnover on the Swiss Stock Exchange reached CHF 93.5 billion, 14.8% less than in the previous month, while the number of transactions decreased by 11.5% to a total of 4,554,218. Since the beginning of 2021, trading turnover reached CHF 580.3 billion with a total of 28,868,212 transactions. The SMI® rose by 3.1% and reached 11,363.5 points at the end of the month, registering a new all-time high with 11,444 points on 28 May 2021 (closing price).

The exchange mentioned in the announcement: “The highest turnover on a single trading day was recorded on 27 May, which saw securities worth a total volume of CHF 9.3 billion changing hands. The highest number of trades was recorded on 4 May, with 292,522.”

5. Interactive Brokers Reports 37% Y/Y Increase in DARTs in May

Interactive Brokers, one of the biggest US-based brokerage firm, recently posted its financial figures for the month of May, revealing a strong performance in Daily Average Revenue Trades (DARTs).

More specifically, the broker registered a DARTs of 2.250 million, up 37% from a year ago, and up 3% compared to the previous month. Ending client equity touched $348.3 billion, 83% higher than last year and 1% higher than April. Ending client margin loan balances totaled $45.8 billion, increased by 97% compared to 2020 and up 2% than prior month. 

In terms of client accounts, this number rose to 1.39 million, 65% higher than prior year and 2% higher than prior month.

6. Saxo Bank Sees Its Lowest Trading Volumes in Five Years​

Saxo Bank, Copenhagen based Retail FX and CFDs broker, has released its trading statistics for May,  indicating that the company saw its lowest FX trading volumes in (at least) five years.

Dating back to the beginning of 2016, Saxo’s lowest reported FX trading volumes for a full month was in November 2019 at $107.4 billion. May 2021 “topped” that, at just $104.3 billion.

The daily average trading volume with forex pairs for last month was $5 billion, 10.7 percent down month-over-month and 34.2 percent lower year-over-year.

Overall, thanks again to the strong Equity trading figures, multi-asset volumes for the month of May were up 7% MoM as compared to April 2021 at Saxo Bank, $298.6 billion versus $279.5 billion. By product:

FX – May volumes $104.3 billion, -16% MoM

Equities – $141.9 billion, +24%

Commodities – $43.3 billion, +37%

Fixed Income – $9.0 billion, -4%

7. Exness Sees 7% MoM Drop in Client Trading Volumes for May​

Fazzaco learned that forex and CFDs broker Exness has reported its financial figures for the month of May, revealing a drop in client trading volumes compared to the previous month.

More specifically, client trading volumes came in at $778.3 billion, 7% lower than April’s $841 billion. 

In the big picture, May 2021 was still one of Exness’ best ever months. By way of comparison, Exness averaged $565 billion in monthly volumes during 2020, and $336 billion in 2019.

The broker also registered a number of active clients of 207,150, compared to April’s 195,069.