CLS Group’s FX volumes surge past $2.0 trillion mark in June

The average daily traded volume submitted to CLS was $2.02 trillion in June 2023, which is up 6.3 percent month-over-month from $1.90 trillion in May 2023. Across a yearly timetable, the figure was up two percent relative to $1.90 trillion in June 2022.

CLS reported swaps volumes at $1.41 trillion in June 2023, which is up from $1.30 trillion in May 2023, a rise of 8.5 percent month-over-month. Additionally, the figure was up 5 percent on a yearly basis.

In terms of CLS’ spot FX volume, the group has reported the figure at $476 billion in June 2023, which is up 9.2 percent relative to $436 billion in the month prior. However, the spot turnover was down 5.4 percent over a yearly basis from the $503 billion set in 2022.

Finally, CLS forwards business yielded a figure of $184 billion last month, up 18 percent from $156 billion the previous month. The figure was also higher by 34 percent over a yearly basis from the $134 billion reported in the same month a year ago.

“In June 2023, we saw average daily traded volumes of USD2.07 trillion, an increase of 4.4% compared to June 2022. Over the same period, FX forward volumes were up significantly by 34.3%, FX swap volumes increased by 5.1%, while FX spot volumes decreased by 5.3%,” 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.