CLS’ Volumes Climb in June, Reach All-Time High in H1 2018

The first half of the year has seen record traded volumes at CLS, driven by increased volatility

CLS Group has reported its volumes and aggregation services statistics for June 2018. Geopolitical fears and other events helped spur volatility, which ultimately facilitated a stronger month in terms of key volumes metrics.

FX volumes have now managed to break out of range-bound trading cycles seen earlier this year. During June 2018, many major pairs saw movement, helped in large part by political events in the US and Europe. Consequently, many institutional venues have seen an uptick in volumes in recent months, with CLS Group being no exception. For its part, CLS Group also managed to outperform its 2017 counterpart across multiple segments.

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CLS statistics trending higher

In terms of the latest statistics, the average daily traded volume submitted to CLS was up in June 2018. The official reading came in at $1.899 trillion, up by 5.9 percent month-over-month from $1.793 trillion in May 2018. Across a yearly timetable, the figure was pointed higher, corresponding to a margin of 25.5 percent relative to June 2017’s reading of $1.644 trillion.

David Puth, CLS
CEO of CLS, David Puth

On the whole, volumes in H1 2018 have reached record highs at CLS. David Puth, CEO at CLS, commented on the recent developments at the group as well as its performance in H1: “The first half of the year has seen record traded volumes at CLS, driven by increased volatility as well as greater participation by a wider segment of the FX market. Greater FX traded volumes bode well for bank trading revenues, with major banks reporting Q2 earnings over the coming weeks.”

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Moreover, “Greater volumes also indicate increased engagement by the buy side in how they manage FX settlement risk. We have seen significant growth from buy side participants through the support of global and local custodians, as well as other third-party service providers. As asset owners, regional banks, non-bank financial institutions and corporates become increasingly aware of the risks associated with currency settlement outside of CLS, we expect traded volumes and participation to continue to increase,” Mr. Puth added.

In June 2018, CLS also reported its swaps volumes at $1.303 trillion, its best performing segment for the month, climbing approximately 9.7 percent month-over-month from $1.188 trillion from May 2018. Once again, across a yearly timetable, the latest figures were seen to be climbing, reflecting a jump of 20.5 percent from $1.081 trillion in June 2017.

Looking at CLS’ spot FX volume, the group has reported a figure at $498.0 billion in June 2018, declining by -1.8 percent month-over-month from $507.0 billion in May 2018. Despite the marginal decline, this figure was, however, higher relative to $455.0 billion set back in June 2017.

Finally, CLS’ forwards business was virtually unchanged in June 2018 relative to the month prior. This segment yielded a figure of $97.0 billion, compared to $98.0 billion in May 2018. The reading was lower by over -10.2 percent year-over-year from $108.0 billion in June 2017.

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