FX volumes at CLS Group just shy of $2 trillion in February

abdelaziz Fathi

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2022 as investors flocked to safe haven assets after the Russian invasion of Ukraine has left financial markets jittery.

CLS

The average daily traded volume submitted to CLS was $1.98 trillion in February 2022, which is up 6 percent month-over-month from $1.87 trillion in January 2022. Across a yearly timetable, the figure was up 2 percent relative to February 2021’s figure of $1.94 trillion.

CLS reported swaps volumes at $1.36 trillion in February 2022, which is up from $1.32 trillion in January 2022, a rise of 3 percent month-over-month. However, the figure was virtually unchanged on a yearly basis from $1.35 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 $514 billion in February 2022, which is up 13 percent relative to $455 billion in the month prior. Additionally, the spot turnover was up 7 percent over a yearly basis from the $479 billion set in 2021.

Finally, CLS forwards business yielded a figure of $108 billion last month, up 15 percent over a monthly basis. However, the figure was down by -6 percent over a yearly basis from the $115 billion set in 2021.

“In February 2022, we saw average daily traded volumes of USD1.98 trillion, an increase of 2% compared to February 2021. Over the same period, FX spot volumes and swap volumes increased 7% and 0.4%, respectively, and FX forward volumes decreased 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.

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