CLS Group Reports Higher FX Volumes, Muted Change Seen YoY

Foreign exchange settlement provider CLS Group reported its operational metrics for January 2020, which dropped slightly on a yearly basis, but executed trade volumes were higher compared with the figures of the prior month.

The average daily traded volume submitted to CLS was $1.772 trillion in January 2020, up 11 percent month-over-month from $1.599 trillion in December 2019. Across a yearly timetable, the figure reflected a drop by one percent relative to January 2019’s figure of $1.784 trillion.

CLS reported 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 volumes at $1.26 trillion in January 2020, up from $1.14 trillion in December 2019, a rise of 10.3 percent month-over-month. However, the figure was virtually unchanged year-over-year from $1.25 trillion a year ago.

Global FX swap volumes surged to nearly $3.2 trillion per day and now account for almost half of global FX trading, according to the Bank for International Settlements’ latest survey, mirroring a pick-up in the spot market and reflecting strong trends in OTC sectors.

In January, currency volumes rebounded at major institutional platforms as industry figures show the interest typically surged following the holiday season. Currency markets also experienced turbulent trades as investors keep watch of the deadly outbreak of the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term in China.

Metrobank joins CLS

In terms of CLS’ spot FX volume, the group has reported the figure at $401 billion in January 2020, down 10 percent relative to $445 billion in the year prior. The figure was higher by 8.3 percent over a monthly basis from the $370 billion set in December.

The mixed performance was again pronounced across CLS forwards business, which yielded a figure of $108 billion last month, up 29 percent over a monthly basis, and was also higher by 26 percent year-over-year from $86 billion in January 2019.

CLS Group, which provides risk mitigation and settlement services for FX dealers and institutions, has recently welcomed Metrobank as the first Philippine bank to access CLSSettlement as a third-party participant.