Gold Market Issues Hit Total Trading Volumes at PrimeXM

PrimeXM has reported weaker trading volumes for April, in line with other institutional and retail platform that saw activity of their clients nearly halved compared to a month earlier when the coronavirus pandemic stocked unprecedented volatility across varying asset classes.

The provider of FX bridge aggregation and institutional hosting solutions today revealed an average daily volume (ADV) of $41.40 billion, down 14 percent month-on-month from $48.22 billion reported back in March.

Having hit $1.15 trillion milestone the previous month, total turnover at PrimeXM took a step back in April, coming in at $910.86 billion, or 21 percent less than it was in March.

A notable drop in PrimeXM’s operational metrics was seen across its Gold instrument XAUUSD, which slid down to 4th position from its top spot last month. While the yellow metal accounted for 20 percent or $223.6 billion of March’s overall traded volume, the disruption of the supply chain of the physical commodity had cut its spot volumes by over 60 percent to $88.74 billion.

The bullion liquidity was thinner in early April due to logistics issue as the coronavirus has decimated supply chains across the world. This has led to much wider spreads than usual while margin requirements increased, as a result trading volume took a hit.

EURUSD took top position in April (17.92% of all volume) and major US indices also picked up in volumes due to volatility in stock markets

Other business highlights show that London LD4 was the strongest across its three major data center locations, with $669 billion worth of trades exchanged hands there, compared to $138 billion in New York and $102 billion in Tokyo.

Founded in 2010, PrimeXM’s key business focus is providing aggregation software, low-latency connectivity, hosting solutions, and high-end MT4/MT5 bridging and white labels. In addition to their primary product XCore, PrimeXM offers hosting services in the most popular data centers used by the FX industry, such as Equinix LD4, NY4, and TY3, which enables clients to house their trading systems and algos in co-location to their execution engine and liquidity providers.