CLS’s Forex Trading Volumes Jump 9.2% In January

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New
York-headquartered provider of settlement and aggregation services for the
forex industry CLS has reported an increase of 9.2% year-over-year (YoY) in average
daily traded foreign exchange volumes (ADVs) in January 2024, reaching $2.09
trillion compared to $1.92 trillion in January 2023.

The
increase was driven by significant growth across all major FX instruments. FX
forwards saw the largest jump, with average daily volumes rising 47.9% YoY to
$204 billion. FX swaps were up 5.9% to $1.39 trillion, while FX spots grew 6.9%
to $498 billion.

“In
January 2024, we saw average daily traded volumes of USD2.09 trillion, an
increase of 9.2% compared to January 2023,” said Lisa Danino-Lewis, the Chief
Growth Officer at CLS.

The growth
in volumes reflects the ongoing recovery in the global economy and increased
currency trading activity among financial institutions like investment banks
and hedge funds that use CLS to settle their foreign exchange transactions.

“Over
the same period, we saw an increase in overall volumes across all instruments.
FX forward volumes were up significantly by 47.9%, while FX spot and FX swap
volumes were up by 6.9% and 5.9%, respectively,” added Danino-Lewis.

Source: CLS

CLS
facilitates the settlement of FX trades in 18 major currencies, processing over
$6 trillion in payments every day. The recent uptick in volumes indicates
positive momentum for CLS and global currency markets as we head deeper into
2024.

Eurex
also reported strong results in January, with volumes growing 6% compared to
the previous year. However, overall reports from firms involved in spot FX
trading told a tale of two different continents. While volumes increased in
Europe, they depreciated in Asia.

CLS Enlists BNY Mellon,
ING to Enhance FX Transaction Handling

Finance
Magnates reported
in mid-January, that BNY Mellon and ING have entered into a partnership with
the financial market infrastructure firm CLS. These banking behemoths have
enrolled in CLSNet, a service dedicated to the netting calculation of bilateral
payments across more than 120 currencies.

BNY Mellon,
recognized as the world’s leading custodian bank with assets surpassing $41.1
trillion, alongside ING, the foremost bank in the Netherlands boasting assets
over €951 billion, have become the newest additions to the expanding CLSNet
community. This service now boasts membership from eight of the world’s major
banks.

“In
January 2024, we saw average daily traded volumes of USD2.09 trillion, an
increase of 9.2% compared to January 2023,” said Lisa Danino-Lewis, the Chief
Growth Officer at CLS.