CLS Volumes Lower in February
Posted by Colin Lambert. Last updated: March 25, 2024
Volumes handled by FX settlement service CLS dropped in February, with activity in all three product sets falling from January, while providing mixed results on a year-on-year basis.
Overall daily volume settled by CLS was $2.026 trillion in February, down 3.2% from January, but up 1.7% year-on-year. Much of the decline came in spot and outright forwards, with the service’s biggest product set, FX swaps, showing only a slight decline of $4 billion per day to $1.387 trillion. Year-on-year, this is up 1.2%, which goes against the data from LSEG FX and 360T in non-spot products -both of which saw small year-on-year declines.
Spot average daily volume on CLS was $459 billion, an outcome that more reflected the primary spot FX venues than the broader industry. Earlier this month, EBS reported an 18.2 monthly, and 28% annual decline, while LSEG FX said spot volumes were down 4.3% on the month and 11.8% on the year. For CLS, the decline from January is 7.8%, while the year-on-year drop is 5.2%.
Outright forward activity on CLS remains at elevated levels historically, however it too has declined. The service reports average daily volume of $180 billion in February, down 11.8% from January, but up more than 30% on a year-on-year basis. Activity matched that in December, and represents the lowest volume for CLS in outright forwards since May 2023.