Fall in corporate FX activity moves emphasis away from London fix

Liquidity data from CLS has revealed unusual trading activity around the 4pm London fix – but it has more to do with corporate inertia than market manipulation.

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In a bid to assess the impact of market stress on liquidity, Mosaic Smart Data, a trading analytics company, recently aggregated volume data from foreign exchange settlement firm CLS over two periods, from January 1, 2018, to February 26, 2020, and from February 27 to March 26.

The study found that FX spot transactions were up 41% in March compared with the previous month, with monthly records for EUR/USD, USD/JPY, GBP/USD, USD/CHF and USD/CAD.

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