CLS Group Reports January Average Daily FX $5.29 Trillion, up 8.6% from December

Monday, 17/02/2014 | 17:16 GMT by Steven Hatzakis

One of the key settlement-risk mitigation providers for a significant portion of all for Foreign Exchange originated by its members, reports January's ADV higher by $420 bln Month-over-Month, and up $100 bln Year-over-Year.

CLS Group Reports January Average Daily FX $5.29 Trillion, up 8.6% from December

According to the latest press release from CLS Group, average daily value (ADV) in Foreign Exchange submitted to it from its members during the month of January 2014 was $5.29 trillion, up 8.6% or $420 billion from December's total of $4.87 trillion, reported by Forex Magnates.

Considering the magnitude typically found within Foreign Exchange volumes, although the $5.29 trillion in January ADV is higher by $100 billion than the $5.19 reported for January 2013, year-over-year (YoY) the change is barely 2% higher, but nonetheless a positive increase reflective of the broader market (if not nearly all of it).

Indeed, FX Volumes have been on the rise during the month of January 2014, when compared to the end of 2013 - which was dismal for many brokers, and from a YoY perspective which has also seen an uptick.

The group is one of the largest providers of settlement risk mitigation services, and in addition to the values released today, CLS Group also provided total average daily volumes (ADV) for its combined settlement and aggregation services which recorded 1,210,588 in January, up 22.4% or 221,914 from 988,674 during the previous month.

January CLS Group Totals [Source: CLS Group]

The volumes are described as the number of instructions received by CLS on a given day for future settlement, although these instructions are not necessarily settled during the month in which they are submitted.

In addition, as previously explained by Forex Magnates, since CLS reports both sides of an FX transaction, to adjust the average daily value data to equate to the same reporting convention used by the Bank for International Settlements and the semi-annual foreign exchange committee market reports, the gross values should be divided by two, (to avoid double-counting).

The company raised money in Q4 2013, in anticipation of increased regulatory costs, as global banking regulations are expected to put on a squeeze for some related businesses.

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The company raised money in Q4 2013, in anticipation of increased regulatory costs, as global banking regulations are expected to put on a squeeze for some related businesses.