Foreign Exchange Trading Volumes Surge Following Brexit Vote

The release of settlement data from CLS, the post-trade settlement service for the global foreign exchange (FX) market, marked a significant increase in trading activity in June. As markets reacted to considerable volatility in GBP and other major currencies following the Brexit vote, trading volumes spiked as banks and funds looked to reposition portfolios and offset risk.

As a result, daily average value submitted to the CLS settlement system hit USD 5.19 trillion, up 12.6% from the previous month and the highest since March 2015. Average daily volumes were also up, increasing by 20% compared to May 2016.

This was a trend observed across the FX market, with foreign exchange trading venue EBS reporting comparatively higher FX trading volumes for June at USD 97.4 billion, a rise of 28.7% from May 2016. ReutersFXAll also matched this trend, recording Spot FX volumes of USD 116 billion, up from USD 94 billion in May.

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