Uncertainty pushes FX volumes above $5 trillion

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 provider CLS bank has announced FX transactions crossing the $5 trillion mark in March. The figures show the continued interest in FX as an asset class and are higher than February figures.

After the record summer months in 2011 trade volumes shrunk in the winter months however with sentiment still unfavorable for the market and more issues coming out of Europe traders are responding.

CLS Bank was set up in 1997 to overcome settlement risk in Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. The bank settled an average of $5.07 trillion in March. Figures for Feb 2012 were $4.68 trillion and $4.24 for January. The latest BIS research in 2011 saw volumes reaching $4 trillion.

Exchanges including ICE, DGCX and CME had promising volumes in March however the big two dealer to dealer FX players Reuters and EBS showed lower volumes.

Thomson Reuters daily volume was 137 billion down from the $150 billion traded in March 2011. ICAP owned EBS had daily trade volume of $122.7 billion.

Apart from the three main ECN's; FXall, Currenex and Hotspot other players are gaining coverage in the market. In addition bank single dealer platforms are improving in functionality. BNP (bank) launched its revised SDP Cortex.

Forexmagnates team wrote a report on the daily FX volumes in the institutional FX market, available n the Q4 2011 quarterly report.