CLS FX reports drop in monthly volumes as year-end lull weighs

abdelaziz Fathi

Total daily traded volume submitted to CLS for settlement took yet another step back in November as the year-end lull hit market activity. The metrics showed a weak performance in the group’s FX business as the year got off to a calm end while no events were able to whip up a market frenzy.

In particular, the average daily traded volume submitted to the FX settlement specialist was $1.89 trillion last month, down from $1.92 trillion in October 2022. Across a yearly timetable, the figure reflected an increase of 4.4 percent relative to November 2021’s $1.81 trillion.

CLS reported swaps volumes at $1.27 trillion in November 2022, down 3.1 percent from $1.31 trillion in October 2022. Further, the figure was slightly higher year-over-year from $1.24 trillion a year ago.

In terms of CLS’ spot FX volume, the group has reported the figure at $473 billion in November 2022 compared to $488 billion in October. Additionally, the figure was higher 2 percent over a yearly basis from the $467 billion set in the previous year.

The mixed performance was again pronounced across CLS forwards business, which yielded a figure of $145 billion last month. That was up 12.4 percent over a monthly basis from $129 billion in October, and also rose by 45 percent year-over-year from $99 billion in November 2021.

“In November 2022, we saw average daily traded volumes of USD1.89 trillion, an increase of 4% compared to November 2021. Over the same period, FX forward volumes were up noticeably by 47% and FX spot and FX swap volumes were also up by 1% and 2%, respectively,” said CLS’s Global Head of Product, Keith Tippell.

CLS Group’s CLSNet, its foreign exchange bilateral payment netting system for emerging currencies, witnessed continued massive growth this year. In October 2022, the group reported a record $100 billion in the average daily notional of net calculations in CLSNet. The milestone marks an increased adoption from market participants and follows the 179% year-on-year increase in the average daily notional of net calculations in H1 2022.

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