CLS Group, a provider of risk mitigation and operational services for foreign exchange dealers and institutions, today reported its trading metrics for February 2017 showing an overall increase compared with the previous month. CLS also changed its reporting methodology to better align itself with the BIS (Bank of International Settlements), trading platforms and central banks.
In total CLS reports $1.5 trillion in FX traded volumes in February 20, an increase of 2.7% month over month from January 2017. This is despite a drop in spots (from $0.460 to $0.427 trillion) and forwards (from $0.093 to $0.092 trillion). As such the rise was comprised completely of swaps (from $0.904 to 0.978 trillion).
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CLS will now report FX data for spot FX, FX forwards and FX swap transactions on a monthly basis based on executed trade volumes, which include only one side of any trade, and only one of the four legs of FX swap trades to avoid double counting the total amount of trades.
Previously, CLS reported settlement input volumes (number of tickets or payment instructions) and settlement input values (total US dollar amount) processed by the CLS settlement service on a daily basis. The settlement input volumes include payment instructions on both sides of any trade and the far leg of FX swaps.
CLS explains that while it now follows the conventions used by the BIS, trading platforms and central banks in reporting FX trading activity, some differences remain. In particular, the surveys include activity that do not attract settlement risk and are not submitted to CLS.