CLS reports FX volumes up by 11.4% (YoY) in April

Rick Steves

The increase was observed across all trading instruments. Notably, FX spot volumes surged by 22.5%. FX forward and FX swap volumes also experienced substantial growth, up by 13.9% and 7.6% respectively.

CLS Group

CLS has announced a significant increase in FX trading volumes for the month of April 2024, with the FX settlement provider registering 11.4% more volumes year-over-year.

According to Lisa Danino-Lewis, Chief Growth Officer at CLS, the average daily traded volumes reached USD 2.16 trillion, marking an 11.4% rise compared to the same period last year.

FX spot surged by 22.5%

The increase was observed across all trading instruments. Notably, FX spot volumes surged by 22.5%. FX forward and FX swap volumes also experienced substantial growth, up by 13.9% and 7.6% respectively. This growth in FX trading activity underscores a robust demand and dynamic market conditions.

The detailed breakdown of the trading volumes shows consistency in growth with forward trades at 0.172 trillion, swaps at 1.459 trillion, and spot trades at 0.525 trillion for April 2024.

These figures represent a noticeable increase from March 2024 and highlight the continued expansion and liquidity of the FX market.

CLS onboarded big names into CLSNet and CCS services

CLS recently onboarded major financial institutions like BNY Mellon and ING to their CLSNet, a netting system for emerging currencies, which has seen considerable growth, with the average daily notional value of net calculations consistently exceeding $115 billion over the past year.

This growth in CLSNet participation reflects a strong industry support and a milestone was noted on December 20, 2023, when CLSNet recorded a daily notional high of $445 billion netted.

CLS also enrolled three settlement members, including Barclays and Danske Bank, into its Cross Currency Swaps (CCS) settlement service. The CCS service, an extension of CLS’s innovative Payment-versus-Payment (PvP) settlement service, CLSSettlement, offers a transformative solution for settling CCS transactions while reducing settlement risk and optimizing liquidity in the process. The CCS service is pivotal in redefining how cross-currency swaps are settled in the financial market. By leveraging CLS’s unique PvP settlement service, settlement members can securely process their CCS transactions, thus mitigating settlement risk.

Additionally, CCS flows are multilaterally netted against all other FX transactions within CLSSettlement. This process significantly reduces daily funding requirements for clients while simultaneously unlocking substantial liquidity optimization benefits across the industry.

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