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

The clearinghouse reported an ADV of $1.75 trillion for the month.

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.

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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.

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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, 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 clearinghouse seeing overall volumes grow by 16 percent compared to May.

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