After Solid Growth in June, CLS Sees Slump in July FX Trading

After reporting solid trading in June, CLS Group has posted its average daily traded volumes for July this Thursday, revealing a drop in volumes across all three of its product segments.

CLS is a leading provider of risk mitigation and settlement services for foreign exchange (FX) dealers and institutions. During the month, the average daily traded volume submitted to the company was $1.75 trillion.

When comparing this to the previous month, when the average daily traded volume was $1.88 trillion, it is lower by 7.1 percent. However, last month’s figure is higher on a year-on-year comparison by 6.8 percent.

CLS: Swap FX ADV Comes in at $1.25 trillion

The total monthly volume is based on three trading sections – swap FX, spot FX, and FX forward contracts. Out of the three, swap FX has by far attracted the highest ADV during July.

In the seventh month of the year, the average daily traded volume submitted to CLS for swap FX was $1.25 trillion. While this is lower by 4.1 percent than the $1.31 trillion figure reported in June, it has grown by 12.1 percent from July of 2018.

Moving on to the trading volumes for FX spot, which generates the second-highest volumes for CLS, July reported an average daily volume of $388 billion. Unlike swap Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, this volume has fallen by 14.3 percent against June of 2019 and 6.7 percent year-on-year.

Taking a look at the average daily volumes for FX forwards, the volume submitted to CLS for the month was $111 billion. When measuring this against the same month of the previous year, it has managed to rise slightly by 3.7 percent. On a monthly comparison, however, it has fallen by 11.9 percent.

As Finance Magnates reported, during June, CLS reported solid growth in trading volumes, with the Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term seeing overall volumes grow by 16 percent compared to May.