FX Volumes Spikes 20% at CLS Group in June, But Lags YoY

CLS saw increases across all products compared to May, but FX swap, forward and spot volumes were down year-on-year.

Foreign exchange settlement provider CLS Group saw strong volumes in June 2020 as investors flocked again to safe-haven assets amid violent market swings on fears of a coronavirus-fueled global recession.

The average daily traded volume submitted to CLS was $1.77 trillion in June 2020, up 20 percent month-over-month from $1.48 trillion in May 2020. Across a yearly timetable, the figure was down five percent relative to June 2019’s figure of $1.88 trillion.

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“June 2020 saw a recovery in average daily traded volumes in comparison to May. The elevated level of volume continued throughout June, which is a contrast to the relatively quiet period seen between mid-April and the end of May following the extreme volatility in March and early April,” said Masami Johnstone, CLS’s Head of Information Services.

CLS reported swaps volumes at $1.23 trillion in June 2020, up from $1.02 trillion in May 2020, a rise of 21 percent month-over-month. However, the figure was lower by -5.4 percent year-over-year from $1.30 trillion a year ago.

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Global FX swap volumes surged to nearly $3.2 trillion per day and now account for almost half of global FX trading, according to the Bank for International Settlements’ latest survey, mirroring a pick-up in the spot market and reflecting strong trends in OTC sectors.

Banco Monex joins CLS

In terms of CLS’ spot FX volume, the group has reported the figure at $443 billion in June 2020, up 15 percent relative to $385 billion in the month prior. The figure was slightly lower by -2.2 percent over a yearly basis from the $453 billion set in 2019.

The mixed performance was again pronounced across CLS forwards business, which yielded a figure of $100 billion last month, up 35 percent over a monthly basis, but was also lower by -20 percent year-over-year from $126 billion in June 2019.

CLS Group, which provides risk mitigation and settlement services for FX dealers and institutions, has recently welcomed Mexican lender Banco Monex as a third-party participant of CLSSettlement. With this, Banco Monex becomes the first Latin American third-party service provider of CLS’s payment-versus-payment (PvP) FX settlement service.

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