FX volume crosses $2.0 trillion mark at CLS Group

Foreign exchange settlement provider, CLS Group saw strong volumes in September 2022 as investors flock to safe-haven currencies amid violent market swings on fears of a Ukrainian war-fueled global recession.

CLS Group

The average daily traded volume submitted to CLS was $2.04 trillion in September 2022, which is up 15 percent month-over-month from $1.77 trillion in August 2022. Across a yearly timetable, the figure was also up by 11 percent from relative to $1.83 trillion September 2021’s figure.

CLS reported swaps volumes at $1.45 trillion in September 2022, which is up from $1.35 trillion in August 2022, a rise of 11 percent month-over-month. However, the figure was also higher by 5.5 on a yearly basis from $1.28 trillion in 2021.

In terms of CLS’ spot FX volume, the group has reported the figure at $540 billion in September 2022, which is up 7 percent relative to $514 billion in the month prior. Additionally, the spot turnover was up 26 percent over a yearly basis from the $436 billion set in 2021.

CLS Group expands product portfolio

Finally, CLS forwards business yielded a figure of $138 billion last month, up 17 percent over a monthly basis from $122 billion in August. Further, the figure was up by 21.1 percent when weighed against the $114 billion set in 2021.

“In September 2022 we saw average daily traded volumes of USD2.04 trillion, an increase of 11% compared to September 2021. Over the same period, we saw an increase in overall volumes across all instruments. FX spot and forward volumes were up noticeably by 24% and 21%, respectively, and FX swap volumes were up 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.