Cboe's spot platform processed $1.07 billion in total December volumes with average daily turnover of $48.6 billion across 22 trading sessions, slipping 2.3% from November's $49.6 billion daily pace but still up 18.5% from December 2024's $41.0 billion.The pullback marked the first monthly decline since August and came as currency volatility subsided following the Federal Reserve's December rate decision. FXSpotStream's institutional ECN saw sharper deceleration, with total average daily volume falling to $123.1 billion from November's $125.0 billion, though the figure remained 34% above December 2024's $92.1 billion.CLS Group, which settles the bulk of institutional FX transactions, reported average daily volumes of $2.38 trillion in December, up 17% year-over-year. The settlement giant saw spot volumes rise 8.9%, FX swaps increase 19.2%, and forwards jump 25.2% compared to December 2024.European Platforms Close Strong YearDeutsche Börse's 360T platform posted December volumes of $741.2 billion with average daily turnover of $32.2 billion, maintaining steady activity levels despite reduced volatility in euro crosses. Euronext FX processed $481.5 billion in total monthly volumes with daily averages reaching $30.1 billion.The European venues benefited from year-end rebalancing flows and corporate hedging activity, though trading remained below October's three-month highs when dollar volatility drove activity across major platforms.Tokyo Financial Exchange's Click 365 retail-focused platform recorded 1.58 million contracts in December with daily averages of 68,736, down 0.7% from November but up 3% year-over-year. The yen-denominated platform continued to recover from mid-year lows as Japanese retail traders returned to currency markets.Full-Year Picture Shows Broad GainsFor calendar 2025, Cboe FX reported record annual spot volumes with average daily notional reaching $49.7 billion, surpassing 2024's record of $45.4 billion by roughly 9.5%. The Chicago-based venue benefited from heightened currency volatility tied to Federal Reserve policy shifts and geopolitical uncertainty that drove strong performance throughout the year.Institutional traders faced a choppy environment in late 2025 as central banks diverged on policy paths. The Fed delivered three quarter-point rate cuts between September and December while the European Central Bank held rates steady through year-end, creating trading opportunities in major crosses that sustained activity levels well above historical norms.The December slowdown suggested some institutional desks reduced risk ahead of year-end, a typical pattern as banks lock in annual profits and hedge fund managers close positions. Trading volumes typically rebound in January as new capital enters the market and macro positioning resumes. This article was written by Damian Chmiel at www.financemagnates.com.

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