CLS Posts Decline in FX Trading Volumes in August

Trading volumes fell both on a yearly and monthly comparison.

CLS, a settlement services provider for the foreign exchange (forex) industry, has published its trading volumes for the month of August today, revealing a month on month decline.

In particular, the average daily traded volume submitted to CLS during the month of August was $1.649 trillion. When measuring this against the previous month, which recorded a monthly daily average of $1.657 trillion, it is slightly lower by 0.5 per cent.

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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.

Taking a look at the average daily traded volume submitted to CLS for Swap FX, August’s volume was $1.188 trillion. Against the previous month, which is lower by 0.3 per cent. Year on year, last month’s figure also shrunk by 0.8 per cent.

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The average daily volume recorded for spot FX in August was $384 billion. Again, this is lower both on a monthly and yearly comparison, falling by 0.5 per cent and 12.9 per cent, respectively. 

The same pattern has occurred for FX forward trading volume, coming in at $77 billion for the period. This is lower than July’s volume of $80 million by 3.75 per cent. It is also less than the $111 million daily average volume posted in August 2019 by 30.6 per cent.

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Commenting on the volumes, CLS’s Head of Information Services, Masami Johnstone, said in the statement: “Daily traded volumes in August were flat (-0.5%) versus the previous month, at USD1.65 trillion. This comprised FX swap volumes of USD1.188 trillion (-0.3%), forward volumes of USD77 billion (-3.8%) and spot volumes of USD384 billion (-0.5%). Compared to August 2019, FX swap volumes were slightly down (-0.8%), while forward and spot volumes recorded a decrease of 30.6% and 12.9%, respectively.

“On Thursday 27 August, Fed Chairman Powell’s speech at the Jackson Hole conference announcing a move to a flexible average inflation targeting regime coincided with the peak August volume of USD2.28 trillion.”

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