CLS FX volume rises to just shy of $2 trillion in February
Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.
The average daily traded volume submitted to CLS was $1.99 trillion in February 2023, which is up 4.2 percent month-over-month from $1.91 trillion in January 2023. Across a yearly timetable, the figure was virtually unchanged relative to February 2022’s figure of $1.98 trillion.
CLS reported swaps volumes at $1.37 trillion in February 2023, which is up from $1.31 trillion in January 2023, a rise of 4.6 percent month-over-month. Additionally, the figure was slightly higher on a yearly basis from $1.36 trillion in 2022.
In terms of CLS’ spot FX volume, the group has reported the figure at $484 billion in February 2023, which is up 3.9 percent relative to $466 billion in the month prior. However, the spot turnover was down 6 percent over a yearly basis from the $515 billion set in 2022.
Finally, CLS forwards business yielded a figure of $138 billion last month, the same as it had been the previous month. The figure was also higher by 28 percent over a yearly basis from the $108 billion reported in the same month a year ago.
“In February 2023, we saw average daily traded volumes of USD1.99 trillion, an increase of 0.5% compared to February 2022. Over the same period, FX forward volumes were up noticeably by 27%, FX swap volumes increased by 1%, while FX spot volumes decreased by 6%,” said CLS’s Global Head of Product, Keith Tippell.
CLS Group, which provides risk mitigation and settlement services for FX dealers and institutions, has shifted its reporting methodology for FX data in 2018. The figures are now reported based on one side of FX transactions and only one of the four legs of FX swap trades, in line with BIS standards and Foreign Exchange Committee market reports, and thus it avoids double counting the total amount of trades.
The company, which was formed in 2002 to reduce FX settlement risks, recently has been keen to promote itself as a provider of innovative products, including post-trade risk management, aggregation, and netting solutions.
