October results varied across the board as volumes fell over 15% from September and range bound markets drove profitability well below year-to-date averages. Interventions in Japanese yen led to volatility in USDJPY, but most brokers were not holding a large amount of JPY exposure, so it did not lead to a large spike in revenue. Profits were primarily driven by gold during the month, but a large portion of those gains were offset by losses in other instruments.

*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

Following rumors that the country may move to ease its zero Covid policy, Chinese government leaders reaffirmed their commitment to the policy in recent weeks. In spite of the policy, new coronavirus cases spiked to a six-month high in October leading to another round of lockdowns. Chinese leader Xi Jinping is set to meet in person with US President Joe Biden in early November in what will be the first face to face meeting between the two since Joe Biden took office.

EUROPE

The European Union has posted record inflation figures in recent months prompting the European Central Bank to again raise rates by .75% in October. Inflation is being driven primarily by a surge in energy prices resulting from the ongoing war between Russia and Ukraine. With no clear end in sight for the conflict, the ECB may be forced into taking more aggressive action in the coming months.

AMERICAS

Following consecutive negative growth quarters to begin the year, the US economy rebounded in the third quarter posting a 2.6% growth in annualized GDP. While that figure is welcome news, inflation and other headwinds continue to put pressure on growth and many experts still project a recession in 2023. With the results of the US mid-term elections still being finalized, it is unclear at this time whether President Joe Biden will have sufficient votes to enact the remaining items on his economic agenda in the coming two years.

 

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