CLS Group, a major forex market settlement provider, released its monthly trading metrics for September, reporting almost $2.04 trillion in the average daily traded volume. The figure is higher by more than 15 percent month-over-month and 11.5 percent on a yearly basis.
September was the second month when the ADV on CLS surpassed the $2 trillion mark. The milestone was first breached last March with a total monthly ADV of $2.12 trillion, making the last one the second-best month for the platform. The overall ADV figure has dropped since March to follow the industry trend.
CLS categorizes its forex market offerings into three primary instruments: forward, swap and spot. Demand for all three offerings jumped in September.
FX swaps , which are the most traded instruments in terms of absolute trading volume, generated an ADV of $1.36 trillion for the period. It jumped from the previous month’s $1.23 trillion and $1.28 trillion in a similar month of the prior year.
The ADV of forex spot instruments came in at $541 billion, compared to $429 billion and $436 billion in August 2022 and September 2021, respectively. Demand for FX forwards also skyrocketed with an ADV of $138 billion, increasing almost 17 percent and 21 percent on a monthly and yearly basis, respectively.
Increasing FX Demand
CLS is a major infrastructure provider in the forex market, offering a wide range of services like settlement, clearing, processing and market data. CLSNet, which is the company’s bilateral payment netting calculation service for buy-side and sell-side institutions, reported a record $100 billion in the average daily notional of net calculations in August.
Meanwhile, other institutional forex platforms and market infrastructure providers reported a significant jump in September demand. FXSpotStream, a multi-bank foreign exchange aggregation service provider in the forex market, witnessed a 15 percent increase in September’s total volume to $1.6 trillion.
