CLS July Volumes Follow Industry Trend, Drop 7% MoM

The total average daily traded volume submitted to CLS in the month of July was $1.657 trillion.

CLS has released its monthly trading volume for July today. Unsurprisingly, the provider of risk mitigation and settlement services for foreign exchange (forex) dealers and institutions has reported a month on month decline in trading volumes.

As Finance Magnates reported, trading providers across the world have largely reported a drop in volumes across the month of July when compared to the unexpected surge in volumes witnessed in June.

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Overall, the total average daily traded volume submitted to CLS in the month of July was $1.657 trillion. This is lower than June’s average daily traded volume of $1.778 trillion, by 6.8 per cent.

Whilst many brokerages have reported a monthly decline in volumes for the month of July, some of them still managed to see an uptick on a yearly comparison. For CLS, however, the total average daily volume was lower by 5.3 per cent year on year, down from $1.750 trillion.

CLS Swap FX Volumes Fall 6% Year on Year

The total average daily volume can be split into three categories: swap, spot and forward forex trading volumes. Swap FX by far contributes the most to CLS’ total trading volumes.

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In July, the average daily traded volume for FX swaps was $1.191 trillion. This is a decrease on the previous month falling by 3.6 per cent. It is also down by 6.0 per cent year on year.

The same pattern can be seen for both spot and forward trading volumes – a monthly and yearly decline. In particular, spot FX trading volume dropped 12.9 per cent month on month, and the daily average traded volume for forwards was 20.0 per cent lower since June.

Masami Johnstone of CLS
Masami Johnstone, Head of Information Services at CLS
Source: LinkedIn

Commenting on the trading volumes, CLS’s Head of Information Services, Masami Johnstone, said in the statement: “Consistent with the summer holiday season, we saw subdued levels of average daily traded volumes in July 2020. Daily traded volumes were USD1.66 trillion, down 7% from June 2020, comprising FX swap volumes of USD1.191 trillion (-3.6%), forward volumes of USD80 billion (-20%) and spot volumes of USD386 billion (-12.9%). 

“Compared to the previous year the overall trend was also down, with a decrease of 4.8% and 27.9% in FX swap volumes and forward volumes respectively, while spot volumes were relatively unchanged (-0.5%).

“Of particular note is the considerable downward trend in forward volumes compared to the previous month and year – a trend that started in April 2020 and has continued through to July.”

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