CLS Bank Reports Small Decline in October Volumes

CLS Bank has reported its October statistics of trades and volumes submitted for 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 on the firm’s network. During the month, average daily volumes (ADV) from submitting banks was $5.0 trillion, 1% below September’s figures, but 7.3% above the same period last year. Adjusted for BIS single count accounting, ADV was $2.5 trillion during the month. Similar to the drop in volumes, the average daily amount of order instructions for settlement and aggregation declined 3.8% to 1,037,584.

ADV were led by FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, which recorded at $834 billion, versus $790 billion of FX spot trading (both figures use BIS accounting). In individual currencies, the CLS Bank reported growth in EURUSD and GBPUSD trading, while volumes fell in the USDJPY, USDCAD and AUDUSD.

Although showing a smaller decline in trading volumes than the publicly trading FX venues, such as EBS and Thomson Reuters, activity from submitting dealers was more or less in-line with the ECNs. Thus showing little preference among traders in October for single versus multi-dealer trading platforms.

For more on the CLS Bank and their role in FX Settlement