CLS Group Sees 5.4% Monthly Decline in October's ADV

CLS Group, which provides 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 settlement services, released its monthly metrics for October. The total average daily traded volume submitted on CLS in the month was more than $1.92 trillion.

The overall figure corrected from $2.03 trillion in September, which was a month-over-month decline of 5.4 percent, while it strengthened by 3.2 percent compared to a similar month of the previous year. Notably, in terms of daily average volume in its operational history, September was the second-best month for CLS'.

Demand Improved Year-Over-Year

CLS categorizes its forex market offerings into three primary instruments: forward, swap and spot. Demand for all three offerings jumped in September.

Forex swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term bring in most of the trading activities in absolute numbers. The average daily trading volume with such instruments came in at $1.31 trillion, almost similar to September's $1.35 trillion and October 2021's $1.31 trillion.

On the other hand, activities with the other two instrument types, FX forwards and spots, noticeably increased from the previous year. "FX forward volumes were up noticeably by 26 [percent], FX spot volumes increased by 10 [percent], while FX swap volumes decreased by 1 [percent]," said Keith Tippell, the Chief Product Officer at CLS.

The average daily traded volume with FX forwards came in at $129 billion. Despite the yearly increase, the figure declined by 6.5 percent from September. With FX spot instruments, the figure arrived at $488 billion, which is a month-over-month decline of 9.7 percent.

The trend of monthly decline and strong yearly demand was seen across other institutional forex trading venues. Cboe FX, Deutsche Börse's 360T, and FXSpotStream have witnessed the same trend for their October numbers.