CLS Bank Posts March Volume Data - FX Trading Stable

CLS Bank has posted March trading data of trades submitted to the bank for settlement. During the month, average trading volumes (ADV) was $5.16 trillion, down 0.2% from February’s $5.17 trillion level. The ADV of trades sent to the bank were 1,217,817, nearly 10.0% below February’s figures, signaling larger average trade sizes.

(Total volumes include FX Spot, Forwards, 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, and NDF trades. In addition, CLS Bank figures reflect reporting of both sides of a trade. Therefore, volume figures need to be divided by two to equate with the BIS’s trade calculations.)

The figures contrast well with those of EBS which showed a 19% decline in month over month trading. Looking ahead, we should soon see volume numbers from Thomson Reuters, FXall, and Hotspot FX, which will provide a better glimpse of whether the CLS data represented an outperformance of single dealer platform trading versus activity on ECNs.

In their more in-depth analysis (available through February 2013’s volume), CLS bank reports show that FX Spot trading has been outperforming FX Swap volumes during 2013 (see chart below). Similar to activity that took place in 2011, Spot trading is benefitting from an increase in volatilities, while Swap activity has more or less remained stable since January 2011. (For more information on the CLS Bank, 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 Magnates will be publishing an in-depth look at the groups activities and their role in FX trading in our upcoming Forex Industry Quarterly Report due out later this month)