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 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 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.
