CLS Group, which provides forex 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 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.
