CLS sees the average daily volume for forex drop by 2% in November
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
A number of trading companies from various corners of the world have been reporting a significant drop in figures in November compared to October, particularly when it comes to volume. However, at the same time, they are still performing better than they did at the same time last year. Continuous Linked Settlement (CLS), which recently published its own report about November’s performance, saw the same situation.
MoM ADV continues to drop in November
According to its report, the average daily traded volume (ADTV) for CLS dropped by around 2%, sinking to $1.89 trillion last month. On a year-over-year basis, on the other hand, the New York-based provider of settlement and aggregation services for the FX sector saw a 4% increase. As mentioned, the volume for November 2022 was at $1.89 trillion, while in November 2021, it was at $1.81 trillion.
The November 2022 figures are a part of a long drop, however, and the last month is not standing out from the rest of Q4 2022 in that regard. For example, according to data for September 2022, ADTV sat at $2.03 trillion, only to sink by 5.4% in October and go down to $1.92 trillion. After that, as November came, the volume kept sinking to the mentioned $1.89 trillion.
If the pattern holds, the company is likely to see an even lower ADTV for December 2022 in its report expected in January 2023.
Other details from the report
After a breakdown of the November 2022 report, experts have found that the provider’s forex forward ADTV is up by 12% compared to the previous month’s figures, reaching $0.145 trillion. This, in turn, represents an increase from $0.129 trillion seen in the month before. At the same time, however, forex swap and spot volumes saw a 3% drop, with forex swap figures going down to $1.274 trillion, while spot sank to $0.473 trillion. Interestingly, both are still an improvement in comparison to November 2021.
The CPO at CLS, Keith Tippel, commented on this by stating that November 2022 brought a drop in average daily traded volumes, but over the same period, FX forward volumes were noticeably up by 47%. Meanwhile, FX spot and swap were up by 1% and 2%, respectively.
Of course, not all firms saw the same behavior in the forex sector. Cboe FX, for example, saw an MoM growth in November 2022, hitting $921 billion. The same is true for Germany’s Deutsche Borse’s 360T, which also saw a month-over-month increase to $545 billion.
But, there are also others that saw a similar performance as CLS, such as Click 365, which is operated by the Tokyo Financial Exchange. Its ADV sank by 16.4% MoM in November 2022. While neither growth nor drops are universal, it is still interesting to see how the figures differ from one company to another.
