CLS Defies Market Trend, Reports Solid FX Trading in September

CLS Group, a leading provider of risk mitigation and settlement services for foreign exchange (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) dealers and institutions, on Tuesday reported its operational metrics for September 2019.

In the FX markets, most trading providers reported an uptick in trading volumes during August, as volatility returned to the market. However, in September, most brokers have posted a month-on-month fall.

The average daily trading volume submitted to CLS, however, goes against this trend, as August noted a rather flat month for the company, and September has actually managed to achieve solid volumes.

During September, the total average daily traded volume submitted to CLS was $1.842 trillion. When measuring this against the previous month, this is higher by 5.3 percent; it has also risen by 6.5 percent year-on-year.

Swap FX leads the way on CLS

The total monthly volume is based on three trading sections – swap FX, spot FX, and FX forward contracts. Out of the three, swap FX has by far attracted the highest average daily volume during September.

In particular, an average daily traded volume of $1.342 trillion was submitted to CLS during September. Against August, last month’s figure has increased by 12.0 percent. It is also higher than the $1.199 trillion ADV recorded in September of 2018 by 11.9 percent.

According to Rob Franolic, who is CLS’s Data Officer, the increased FX swap activity is: “consistent with increased hedging, reflecting concerns around geo-political risks such as Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term and US-China trade relations.”

Moving on to the trading volumes for FX spot, which generates the second-highest volumes for CLS, September noted an ADV of $406 billion. Unlike Swap FX, this figure is actually lower on both a monthly and yearly comparison. In particular, it has fallen by 7.9 percent and 9.2 percent respectively.

The final segment, forex forwards, recorded an average daily volume of $94 billion during the ninth month of the year. Although this has fallen against August by 15.3 percent, it has still managed to increase by 13.3 percent year-on-year.