CLS FX volume closes 2022 on weak note, drops to $1.7 trillion

Total daily traded volume submitted to CLS for settlement took yet another step back in December as the year-end lull hit market activity. The metrics showed a weak performance in the group’s FX business as the year got off to a calm end while no events were able to whip up a market frenzy.

In particular, the average daily traded volume submitted to the FX settlement specialist was $1.7 trillion last month, down 10 percent from $1.89 trillion in November 2022. Across a yearly timetable, the figure reflected an increase of 3 percent relative to December 2021’s $1.64 trillion.

CLS reported swaps volumes at $1.18 trillion in December 2022, down 6.7 percent from $1.27 trillion in November 2022. Further, the figure was slightly higher year-over-year from $1.17 trillion a year ago.

In terms of CLS’ spot FX volume, the group has reported the figure at $409 billion in December 2022, down -13.5 percent compared to $473 billion in November. Additionally, the figure was higher 9.3 percent over a yearly basis from the $374 billion set in the previous year.

The weak performance was again pronounced across CLS forwards business, which yielded a figure of $107 billion last month. That was lower by 26 percent over a monthly basis from $145 billion in November, but rose by 12 percent year-over-year from $95 billion in December 2021.

“In December 2022, we saw average daily traded volumes of USD1.7 trillion, an increase of 3% compared to December 2021.  Over the same period, we saw an increase in overall volumes across all instruments with FX forward, FX spot and FX swap volumes up 13%, 9% and 1% respectively,” said CLS’s Global Head of Product, Keith Tippell.

CLS Group’s CLSNet, its foreign exchange bilateral payment netting system for emerging currencies, witnessed continued massive growth this year. In November 2022, the group reported a record $100 billion in the average daily notional of net calculations in CLSNet. The milestone marks an increased adoption from market participants and follows the 179% year-on-year increase in the average daily notional of net calculations in H1 2022.