Extreme volatility in March 2020 as the market reacted to the Covid-19 pandemic had a corresponding impact on market volumes. Using data gained from about 250,000,000 trades executed by our clients, Cappitech offers some clarity on this trading activity.
Transaction volumes more than doubled between February and March, increasing by 113% in March 2020 vs. Feb. Considering that market volatility started increasing before the seismic government interventions of March 2020, it is also interesting to note that volumes in March 2020 were up 245% compared to the Q4 2019 monthly average.
In addition, it is clear that proprietary traders, as well as dealers and brokers, saw the most significant volume increases. For dealers, the benefit of a multi-asset offering is clearly demonstrated, with significant volume growth for those who have a strong equity business.
Ronen Kertis, CEO and Founder of Cappitech, said: “At a time when many market participants are working under difficult conditions, we have seen increased volumes which in turn have led to an increased need for regulatory control. During these unusual times, Cappitech has been working diligently to maintain our high-standard of customer service and to keep our customers as compliant as always. Through our large data set of trades we are also able to analyse the market trends and help our customers gain business benefit during this period."
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