CLS’ November Volumes Largely Flat as Markets Looking for Direction

Volumes did rebound on a monthly basis though yearly averages are underperforming.

CLS Group has reported its volumes and aggregation services statistics for the month ending November 2017. Volumes were pointed slightly higher as volatility crept up along with other factors that collectively influenced the USD. The group’s volumes did manage to see a monthly rebound after a sluggish October, with market actively largely lower over the past couple months since an active September.

The results at CLS Group were on par with other institutional venues, with compressed activity preventing any substantiatial rebound on a monthly basis. However, CLS’ volumes did see a slight increase in November, thanks in part to developments in the United States.

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An ongoing wait-and-see saga with US tax reform helped stagnate markets somewhat – by extension a bullish rise of US equities has impacted the USD and more broadly speaking FX volumes. Markets are looking for direction on each of these developments, with a fresh revelation or political scandal also capable of kickstarting markets in December.

Per the latest figures, CLS Group managed to rebound off a relatively weak October. In terms of November 2017, CLS’s submitted average daily input volume, which combines its settlement and aggregation services, was reported at $1.67 trillion during the month.

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This figure corresponded to a rise of 3.8 percent month-over-month from $1.61 trillion set back in October 2017. Overall, this reading was also higher than its 2016 counterpart, justifying a year-over-year jump of 8.89 percent from $1.54 trillion. An increase on a yearly basis is noteworthy given the US election back in 2016 that caused a wide flux of volumes and market activity last November.

Of note, the increased volumes were not attributed to any differential in trading days in November 2017, which featured 22 days, unchanged from 22 days in October 2017. Furthermore, the latest batch of statistics in November 2017 included a swaps figure of $1.149 trillion, which rose on a monthly basis against $1.090 trillion in October 2017, or 5.4 higher percent month-over-month.

This gain was reflective of a yearly improvement relative to 2016 as well. November 2017 corresponded to a growth of 22.6 percent year-over-year from $937.0 billion in November 2016.

Looking at spot FX volumes, CLS Group reported $439.0 billion in November 2017, up by a tepid 2.8 percent month-over-month from $427.0 billion in October 2017. This change was inverted lower over a year-over-year interval, incurring a decline of -14.6 percent from $514.0 billion in November 2016.

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