FX volume drops 7pct at CLS Group in July 2022

abdelaziz Fathi

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in July.

CLS Group

In particular, the average daily traded volume submitted to CLS was $1.87 trillion last month, down -6 percent month-over-month from $1.98 trillion in June 2022. Across a yearly timetable, however, the figure reflected an increase of 7 percent relative to July 2021’s $1.74 trillion.

Following a period of wide-scale volatility and increased trading activity during the initial phase of the Russo-Ukrainian war, average daily traded volumes in CLSSettlement, a payment-versus-payment settlement service, have now stabilized at lower volumes as compared to the first quarter.

CLS reported swaps volumes at $1.26 trillion in July 2022, down from $1.34 trillion in June 2022. Further, the figure was slightly higher year-over-year from $1.24 trillion a year ago.

Russian invasion left financial markets jittery

In terms of CLS’ spot FX volume, the group has reported the figure at $471 billion in July 2022, down 6 percent from $502 billion in June. Additionally, the figure was higher 12 percent over a yearly basis from the $420 billion set in the previous year.

Although monthly comparisons are always vulnerable to short-term fluctuations, there was a longer-term trend of declining spot volumes. However, the curve of this decline seems to have flattened in recent months.

The weak performance was again pronounced across CLS forwards business, which yielded a figure of $140 billion last month. That was marginally higher over a monthly basis from $137 billion in June, and was also up by 66 percent year-over-year from $84 billion in July 2021.

CLS figures reflect the trend observed in the monthly figures from major trading platforms, which have seen record-breaking volumes in the first quarter before turning to suffer lackluster activity. But after several flat months, the latest metrics from major institutional FX platforms show the FX market has bounced back with slight jumps in daily trading volumes.

“In July 2022, we saw average daily traded volumes of USD1.88 trillion, an increase of 8% compared to July 2021. Over the same period, FX forward and spot volumes were up significantly – by 66% and 12%, respectively – while FX swap volumes were also up by 2%,” said CLS’s Global Head of Product, Keith Tippell.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<