Average daily traded volume in the global currency market fell 8 percent in October from the previous month, according to data from settlement system CLS. CLS, a major settler of trades in the foreign exchange market, said the average daily input volume of instructions submitted fell to $1.62 trillion in October from $1.75 trillion in the previous month. On an annual basis, average traded volumes were higher.
Investors say falling volatility in currency markets has led to a general slump in volumes across the board. At 5.5, realised volatility in dollar/yen, one of the more volatile currency pairs in the world, is approaching its lowest levels this year. As of January 2017, CLS decided to change its reporting methodology to align more closely with that of the Bank of International Settlements (BIS), trading platforms and central banks.