The average daily volume (ADV) of trades submitted to CLS was $1.6 trillion in December, down 0.5% month-on-month, but up 2.8% year-on-year.
Swaps trades accounted for $1.1 trillion of this total ADV last month, down 8.3% from the $1.2 trillion recorded in November 2019, but up 4.6% compared to December 2018.
The total ADV of spot trades sent to CLS in December was $370 billion, very slightly higher than the $366 billion recorded the previous month, but down 11.3% compared to the $417 billion recorded in December 2018.
This is consistent with the broader trend indicated by the FX trading platforms that have already reported their spot FX volumes from last month. Cboe FX, EuronextFX, Integral and Refinitiv all reported ADVs for December that were up slightly month-on-month, but down year-on-year.
An ADV of $84 billion FX forward trades were submitted to CLS last month, up from $69 billion in November, but down from $87 billion in December 2018.
“The pattern in the last month mirrored that seen throughout much of 2019: significant growth in FX swap activity (9% compared to December 2018), partly offset by a decline in the spot market. We also saw heightened USD/MXN FX swap activity in December with a record daily average of $23 billion. This coincided with Mexico lowering interest rates for the fourth consecutive time on 19 December and the signing of a new trade deal with the US and Canada earlier in the month,” says Rob Franolic, head of quantitative research at CLS.