After a mixed start to the year, CLS Group, a leading provider of risk mitigation and (FX) dealers and institutions, has reported a further decline in the daily traded volumes submitted by its clients this Friday.
During the month of February, the to CLS was $1.725 trillion. Whilst this might seem to be a solid figure, it is by 3.3 per cent, which was $1.784 trillion.
When measured against the same month of the previous year, February of 2018, the results also do not hold up. This is because February of last year saw a daily average traded volume of $1.949 trillion submitted, which is around 11.5 per cent higher.
The total traded volume can be broken down into three separate segments – swap FX, spot FX and FX forwards. Out of the three, swap FX consistently attracts the largest daily average volumes.
In February of 2019, the average daily traded volume was $1.227 trillion. When measured against the previous month, which had an average volume of $1.253 trillion per day, this is less by 2.1 per cent. February of 2018 reported an average daily traded volume of $1.301 trillion, which is also up from last month’s result by 6.1 per cent.
Moving on to Spot FX, the average traded volume per day last month was $402 billion. This is down on both a monthly and yearly comparison by 9.7 per cent and 25 per cent, respectively.
FX Forwards Bucks Declining Trend on CLS
However, FX forwards, which is the smallest out of the three segments in terms of volume, actually managed to report an increase in the daily traded volumes of 11.6 per cent when measured against the previous month.
Specifically, during the month of February, $96 billion worth of FX forwards trades were recorded. However, although up month-over-month, on an annual comparison, last month’s result was still down by 4 per cent.
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