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 Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term-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.
“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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.
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.
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 Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term-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.
“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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.
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.