CLS FX volumes surge to just shy of $2 trillion in June

abdelaziz Fathi

Foreign exchange settlement provider, CLS Group saw strong volumes in June 2022 as Russia’s invasion of Ukraine continues to weigh on a world economy that’s yet to fully recover from the pandemic shock.

The average daily traded volume submitted to CLS was $1.98 trillion in June 2022, which is up 6.5 percent month-over-month from $1.86 trillion in May 2022. Across a yearly timetable, the figure was up 4 percent relative to June 2021’s figure of $1.90 trillion.

CLS reported swaps volumes at $1.34 trillion in June 2022, which is up from $1.26 trillion in May 2022, a rise of 6.3 percent month-over-month. However, the figure was lower by 2 percent on a yearly basis from $1.37 trillion in 2021.

Global FX swap volumes surged to nearly $3.2 trillion per day and now account for almost half of global FX trading, according to the Bank for International Settlements’ latest survey, mirroring a pick-up in the spot market and reflecting strong trends in OTC sectors.

In terms of CLS’ spot FX volume, the group has reported the figure at $502 billion in June 2022, which is up 5 percent relative to $478 billion in the month prior. Additionally, the spot turnover was up 17 percent over a yearly basis from the $428 billion set in 2021.

Finally, CLS forwards business yielded a figure of $137 billion last month, up 8 percent over a monthly basis. The figure was also higher by 34 percent over a yearly basis from the $102 billion reported in the same month a year ago.

“In June 2022, we saw average daily traded volumes of USD1.98 trillion, an increase of 4% compared to June 2021. Over the same period, FX forward volumes were up noticeably by 33%, FX spot volumes increased by 17%, while FX swap volumes decreased by 3%,” 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.

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