Market volatility driven by the war in Ukraine drove volumes and profits in March to figures well above 2021 averages.  Early in the month, PL was driven by rallies in both gold and oil, though both retraced later in the period eroding some of the gains. Additionally, consistent depreciation in JPY provided profitability to many brokers with exposures in those crosses. GBPUSD and EURAUD also sold off throughout March adding additional revenues to an already strong month.

*Average Daily Volume represents the daily volume from ISRA customers for each day of the month divided by the average daily volume for the month. Each day is represented as a percent of the average.

** Average Daily B Book PnL represents the daily B Book PnL from ISRA customers for each day of the month divided by the average daily B Book PnL for the month. Each day is represented as a percent of the average.

Source: IS Risk Analytics Database. Past Performance is not necessarily indicative of future results

ASIA

China’s efforts to control Covid 19 if not reach “zero-Covid” have led to lockdowns in large metropolitan areas including Shanghai. Since March, partial or full lockdowns have been put in place in over 20 cities and Nomura estimates those cities account for approximately 22% of the country’s economy. These actions have stoked fears that Chinese economic growth will be much weaker than initially expected this year.

EUROPE

Surges in energy and food prices along with other fallout from the war in Ukraine have led a number of economists to rather dramatically alter their economic projections for 2022. Barclays lowered its eurozone growth forecast for the year by 1.7% to 2.4% and raised its inflation forecast to 5.6%. Russia’s efforts to restore value in the ruble following its crash at the outset of the invasion appear to have been successful thus far with its value already returning to pre-war levels.

AMERICAS

The United States has indicated it will continue taking measures to cut Russia off from global financial systems in response to its invasion of Ukraine. Treasury Secretary Janet Yellen stated that the goal is to inflict “maximum pain” on Russia, but at the same time indicated that restrictions should also be tailored to shield the US and its allies from undue economic harm as much as possible.

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