The foreign exchange settlement provider, CLS Group, has reported strong volumes in January 2021 after investors turned to FX markets amid violent market swings due to fears of a coronavirus-fuelled global recession. CLS saw a rise in swap volumes from $1.26 trillion in December 2020 to $1.36 trillion in January 2021, equating to an increase of 7.9% month-over-month, the figure was also rising by the same percentage yearly.
In terms of CLS’ spot FX volume, the group reported the figure at $461 billion in January 2021, up by 13% relative to $408 billion in the month prior. The figure had also risen by 15% over a yearly basis from the $401 billion set in 2020.
According to a recent survey conducted by the Bank for International Settlements, Global FX swap volumes have surged to nearly $3.2 trillion per day. They now account for almost half of global FX trading. This is said to reflect a pick-up in the spot market, mirroring strong trends in OTC sectors.
