Non-Spot FX Volumes Mixed as LSEG, CLS, Follow Spot Trend
Posted by Colin Lambert. Last updated: July 18, 2023
The reporting cycle for June’s FX volumes has been completed with LSEG FX following the trend in spot activity from other platforms to report previously, while data from that firm, CLS and 360T indicate a more mixed performance in non-spot products.
LSEG FX says average daily volume (ADV) in spot FX was $99 billion in June, up 10% from May, but down 2.9% year-on-year. Although very close to the mark, this means the firm’s spot volumes have been below the $100 billion threshold for three consecutive months for the first time since the end of 2021.
The LSEG FX data was reflected by CLS, which reports it handled $476 billion in spot volumes daily during the month, a 9.2% rise from May, and down 5% year-on-year. CLS also says that forwards ADV was $184 billion per day, an impressive 17.9% increase from May, and up and equally impressive 34.3% year-on-year.
CLS also reports FX swaps ADV of $1.409 trillion in June, an 8.3% increase from May, and up 5.1% year-on-year. This data largely reflects the experience at Deutsche Börse’s 360T where total FX ADV across all products was EUR 106.4 billion. Using a fixed exchange rate, The Full FX estimates this to represent non-spot volumes of $129.8 billion, a 2.1% increase from May, and up 5% year-on-year. Earlier this month, 360T reported spot ADV of $26.9 billion and NDF volumes of $1.47 billion per day in May.
LSEG FX also saw an increase in FX swaps activity on a month-on-month basis, but was down year-on-year. ADV was $349 billion in June, a 4.5% increase from May, but as noted, down 4.9% from June 2022.
Finally, Singapore Exchange reports it hit a new record for FX activity in June, with daily volume across its platforms, which include CurrencyNode, BidFX and MaxxTrader, breaking above $100 billion. Led by CNH ($9.8 billion notional per day) and INR ($4.1 billion notional per day), SGX says FX futures increased by 12% from May to 3.3 million contracts. In June 2022, SGX reported 2.9 million FX futures contracts traded per day.
