CLS Bank Reports Lowed FX Volumes for October

FX Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term firm, CLS Bank, has reported lower trading volumes and transactions for October versus September s results. For October, CLS settled an average of $4.66 trillion/day in volume compared to $5.19 trillion in September. Total trades for the month were registered at 1,005,312, which was 9.9% lower than the previous month. October’s results were also below the Q3 average of $4.72 trillion in volume. (Of note, CLS Settlement data calculates figures from both parties of a trade, as each side reports separately within the CLS network. Therefore, to compute the value of initiated trades, the CLS volumes need to be divided by two. )

The drop in the CLS data matches the drop that we saw taking place in the CME’s FX unit and could bode negatively for other institutional FX trading venues which are expected to release their October figures soon.