CLS sees a FX ADV increase of 12.3% after months of declines
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According to the recent data released by Continuous Linked Settlement (CLS), its average trading volume of forex trading recently saw an increase after declining for three continuous months. The decline started in September 2022, and each month after that, the figures were getting lower. Now, the new data for January 2023 revealed that the pattern was finally interrupted.
The New York-based provider of aggregation and settlement services for the FX sector noted that its ADTV for last month increased by 12.3%, hitting $1.92 trillion after previously only reaching $1.7 trillion in December. The volume is even higher when compared to January 2022, although only by 2%.
The FX ADV for September 2022 was at around $2.04 trillion, but when the figures came next month, the company recorded a 5.4% decline, with the total of $1.92 trillion. The figures sank even more in November, going down by another 2% to $1.89 trillion.
Commenting on the January numbers, the company onted that its forex forwards, swap, and spot, jumped by 29%, 10%, and 14% on a monthly basis, respectively. Forex forwards and spot even improved by 47% and 2% on a YoY basis, but forex swaps dropped by 1%.
As for currency pairs, the firm said that three of them shot up — USD/JPY went up by 28%, followed by a 20% increase for USD/SGD, and lastly, a 12% growth was recorded when it comes to USD/HKD. All of these surges were recorded on a YoY basis.
Forex trades blew up in January after the holidays
Daily FX spot market saw January 18th as the most active day, with the busiest market last month. The forex industry had seen $694 billion traded that day. Meanwhile, the busiest hour for the entire last month was on January 31st, at 16:00 London time. On this Tuesday, the forex market saw $128 billion in trading volume.
According to CLS, the volumes are based on trades that were submitted to its settlement and aggregation services. The company adjusted the data to equate to the same reporting convention that is commonly used by the Bank for International Settlements (BIS), as well as the semi-anual foreign exchange committee market reports.
It would also seem that CLS is not the only one to notice this kind of behavior when it comes to forex sport trading. In fact, many other institutional venues for forex saw the same performance in January, as the market started its recovery from holiday lows.
Some of the most notable examples came from FXSpotStream, whose total trading volume went up by 3%, resulting in a total of $1.3 trillion in January, followed by Cboe FX which saw a 16% increase to a total of $901 billion, and lastly, 360T saw a 4.5% growth of the monthly volume, which increased to $512 billion last month.
