CLS’ FX ADTV Drops 5.6% to $1.77 Trillion in August, Rises 6% YoY

Average daily traded volumes (ADTV) on Continuous Linked Settlement (CLS), a New York-headquartered provider of settlement and aggregation services for the forex industry, dropped 5.6% to US$1.77 trillion in August.

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In July, the ADTV touched $1.88 trillion, rising 8% year-over-year (YoY).

However, while the average forex volume declined month-on-month in August, it climbed 6% from the $1.68 trillion generated in August 2021.

These details are contained in the CLS FX trade volume report for August 2022 shared with Finance Magnates on Friday.

FX Market Breakdown

According to CLS, on a month-over-month basis, its forex swaps, spot and forward market volumes dropped 3%, 9% and 15% respectively in August.

Year-over-year, however, CLS' forex swaps remained flat, accounting for US$1.23 trillion of the total traded volumes.

On the other hand, while spot trade volume climbed 17% YoY, bringing in US$429 billion, outright forward volume surged by 49%, contributing US$118 billion to the total traded volume.

“A year-on-year increase in overall volumes was not seen across all products,” CLS noted.

“Over the same [YoY] period, FX forward and spot volumes were both up noticeably by 49% and 17%, respectively, while FX swap volumes remained flat,” Keith Tippell, CLS Chief Product Officer, said.

In the spot market, traded volumes of currency pairs USD/JPY, USD/SGD and EUR/USD surged 56%, 49% and 23% year-over-year, respectively.

In terms of daily spot volumes, CLS said August 31st was the busiest day as US$606 billion changed hands on the day.

The majority of major currency pair volumes peaked on this day, the forex settlement and aggregation service provider added.

Meanwhile, in March, CLS crossed the $2 trillion mark in terms of average daily trading volume.

The providers ADTV climbed from $1.982 in February to $2.125 trillion in March as demands across all of its forex instruments soared.

Furthermore, CLS Group reported a record $100 billion in average daily notional value of the net calculations on CLSNet for the month of August.

CLSNet is a bilateral payment netting calculation service that caters to buy and sell-side institutions, supporting 120 currencies.

It operates a centralized infrastructure for the institutions and provides a single common record of their net payment obligations.

Through this method, the service streamlines post-trade matching and netting processes.