CLS Group's Volumes Edge Lower in July as Volatility Declines

CLS Group has just released its latest volumes and aggregation services statistics for the month ending July 2018. Markets took a slightly more subdued tone during the summer month, also reflecting mitigated Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term that yielded an influence and decline in trading statistics.

While July had multiple events and other political developments that helped drive geopolitical fears, these did not seem to dramatically move the needle across currency markets. FX volumes had previously managed to break out of range-bound trading cycles, and for the most part, July’s figures are stronger than earlier this year.

However, during July 2018, despite pairs seeing some degree of movement, institutional venues could not build on previous monthly growth in volumes. For its part, CLS Group's latest statistics were able to outperform their 2017 counterparts, though incurred a monthly decline in key figures.

CLS statistics drift lower during summer

In terms of the latest statistics, the average daily traded volume submitted to CLS was down in July 2018. The official reading came in at $1.638 trillion, down by 13.7 percent month-over-month from $1.899 trillion in June 2018. Across a yearly timetable, the figure was pointed higher, however, corresponding to a growth of 2.6 percent relative to June 2017’s reading of $1.596 trillion.

In July 2018, CLS also reported its 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 volumes at $1.115 trillion, falling approximately 14.4 percent month-over-month from $1.303 trillion from June 2018. Once again, across a yearly timetable, the latest figures were seen to be climbing, reflecting a climb of seven percent from $1.042 trillion in June 2017.

Looking at CLS’ spot FX volume, the group reported a figure at $416.0 billion in July 2018, declining by 16.4 percent month-over-month from $498.0 billion in June 2018 – its worst performing segment for the month. Despite the decline, this figure was higher compared to $453.0 billion set in June 2017.

CLS’ forwards business meanwhile bucked a trend and managed to grow in July 2018, relative to the month prior. This segment yielded a figure of $107.0 billion, compared to just $97.0 billion in June 2018. The reading was higher by over 5.9 percent year-over-year from $101.0 billion in June 2017.

Of note, the slowdown has occurred after a record H1 for CLS Group, suggesting more of a seasonal slowdown.