Average daily traded volumes (ADTV) of forex trading in January 2023 recovered from a three-month decline that started in September 2022, Continuous Linked Settlement (CLS) revealed in its forex trade volume released on Friday.

According to the New York-headquartered provider of settlement and aggregation services for the forex industry, ADTV for the month came in at $1.92 trillion (T), which is a 12.3% increase from the $1.7 trillion recorded in December 2022. However, when compared to January 2022, the volumes only increased by 2%.

CLS Recovers from 3-Month Dip in FX ADV

In September, the forex market settlement provider reported a forex ADV of almost $2.04 trillion. However, the volume declined by 5.4% to $1.92 trillion in October and dropped by 2% to $1.89 trillion in November.

Giving a breakdown of the January numbers, CLS noted that its forex forwards, spot and swap jumped 29%, 14% and 10% month-on-month, respectively. However, while FX spot and forwards improved by 2% and 47% year-on-year (YoY), FX swaps decreased by 1%. The volumes came in at $466 billion, $138 billion and $1.31 trillion, respectively. Furthermore, in terms of currency pairs traded, CLS noted that USD/JPY, USD/SGD and USD/HKD shot up 28%, 20% and 12% year-on-year, respectively.

In the daily forex spot market, CLS reported that January 18 was the busiest day of the month for the forex industry as $694 billion was traded on that day. On the other hand, the busiest hour in the month was seen at 16:00 (London time) on Tuesday, January 31st. A total of $128 billion was traded during this period, CLS said.

Meanwhile, CLS pointed out that its volumes are based on trades submitted to its settlement and aggregation services. “The data is adjusted to equate to the same reporting convention used by the Bank for International Settlements (BIS) and the semi-annual foreign exchange committee market reports,” CLS explained.

Spot FX Industry Recovers from Holiday Lows

Meanwhile, Finance Magnates reports that other institutional venues for forex spot trading reported increases in their trading volumes in January as they rebound from the holiday lows.

While FXSpotStream’s total trading volume grew by 3% to $1.3 trillion, Cboe FX’s trading volume shot up 16% to $901 billion. In addition, 360T’s total monthly volume rose 4.5% to $512 billion in January 2023.