“In January 2024, we saw average daily traded volumes of USD2.09 trillion, an increase of 9.2% compared to January 2023. 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.”
CLS has reported an increase in average daily traded volumes to USD 2.09 trillion in January 2024, marking a 9.2% rise from January 2023.
The growth was reflected across all instruments, with FX forwards showing the most significant rise at 47.9%. FX spot and swap volumes also increased by 6.9% and 5.9%, respectively.
Despite these changes, January’s FX spot volume remained steady at 0.498 trillion, unchanged from December 2023. The total average daily traded volume submitted to CLS in January 2024 reached 2.093 trillion, slightly up from 1.967 trillion in December 2023.
The report notes rounding may affect the precision of these figures and includes adjustments due to the inclusion of EURHUF trades starting February 2023.
Lisa Danino-Lewis, Chief Growth Officer at CLS, stated: “In January 2024, we saw average daily traded volumes of USD2.09 trillion, an increase of 9.2% compared to January 2023. 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.”
CLS onboarded big names into CLSNet and CCS services
CLS recently onboarded major financial institutions like BNY Mellon and ING to their CLSNet, a netting system for emerging currencies, which has seen considerable growth, with the average daily notional value of net calculations consistently exceeding $115 billion over the past year.
This growth in CLSNet participation reflects a strong industry support and a milestone was noted on December 20, 2023, when CLSNet recorded a daily notional high of $445 billion netted.
CLS also enrolled three settlement members, including Barclays and Danske Bank, into its Cross Currency Swaps (CCS) settlement service.
The CCS service, an extension of CLS’s innovative Payment-versus-Payment (PvP) settlement service, CLSSettlement, offers a transformative solution for settling CCS transactions while reducing settlement risk and optimizing liquidity in the process. The CCS service is pivotal in redefining how cross-currency swaps are settled in the financial market. By leveraging CLS’s unique PvP settlement service, settlement members can securely process their CCS transactions, thus mitigating settlement risk.
Additionally, CCS flows are multilaterally netted against all other FX transactions within CLSSettlement. This process significantly reduces daily funding requirements for clients while simultaneously unlocking substantial liquidity optimization benefits across the industry.