CLS Group Reports Marginal Recovery in May FX Demand

CLS Group, a forex market settlement provider, published trading metrics for May, reporting a recovery in demand both month-over-month and year-over-year. It handled a total average daily traded volume (ADV) of $1.866 trillion last month.

It was a marginal recovery from the ADV of the previous month when the platform handled $1.859 trillion. On a year-over-year basis, there was an ADV uptick of almost 3.8 percent compared to $1.798 trillion in May 2021.

However, the demand on the FX settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term platform remained significantly lower than the peak it had achieved last March with more than $2.1 trillion in ADV.

Rising Demand in FX Trading

CLS is one of the major 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 settlement providers with several big banking names under its network. The FX settlement published by it is based on the executed trade volume submitted to the platform.

It categorizes its services under forex forwards, swaps and spot instruments. While the demand across forward and spot markets surge in May, swaps witnessed a decline.

According to the data published by the company, it had handled $127 billion in ADV for FX forwards. This figure was 10.4 percent higher than the previous month and more than 44 percent above the same month of the previous year.

Spot forex ADV for the month came in at $478 billion, compared to $475 billion in April 2022 and $431 billion in May 2021. May ADV of FX swaps came in at $1.261 trillion, which declined marginally from $1.269 trillion handled in the previous month and $1.269 trillion in the previous year.

Meanwhile, other institutional and retail forex trading venues witnessed a recovery in their handled trading volume last month. As Finance Magnates reported earlier, Cboe FX saw a surge of 12 percent in May’s trading volume, while FX demand on retail trading platform Saxo climbed 19 percent.