CLS volumes on rise - institutional investors are back?

CLS Bank reported that the average number of daily foreign exchange payment instructions rose 7.1 percent in October from the previous month, data from FX settlement system showed.

The average volume of payment instructions was at 672,665 last month from 627,954 in September.

On the year, volumes were down 7.6 percent after a record 727,934 last October in the wake of the collapse of Lehman Brothers. The average daily value came in at $3.76 trillion in October, up 5.0 percent from the previous month.

This is encouraging news, as it shows that institutional investors are slowly re-entering the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market. Institutions are long term value investors and shy away from volatility - something retail investors thrive on as speculators.

Three months ago I reported a drop of 25% in institutional Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term volume as reported by the Foreign Exchange Committee. If CLS’s report is an indicative one this should mean that the volumes are climbing back to peak levels and this is good news for retail Forex market as well as it might fuel a collateral growth in the retail market as well which is not growing as rapidly as it used to.