LONDON Dec 12 The surprise outcome of the U.S.
election and Britain's Brexit vote could lead to increased
activity in foreign exchange trading in the near-term, but also
depress activity in the longer-run, settlement system CLS said
CLS, which settles more than 90 percent of all trades in the
global currency market, said both events had a significant and
similar impact on the FX spot market in the days immediately
"The unexpected outcome of both events creates uncertainty
which could lead to increased activity in the near term.
However, it is also feasible that they could depress activity in
the longer term," CLS said in a statement.
"If trade deals are renegotiated or protectionist policies
implemented, then international trade would likely be reduced."
CLS also said the average daily volume rose to $4.99
trillion in November, a 1.4 percent increase from October.
A rise in trading volumes tends to be good news for the
major banks and brokerages who are most heavily engaged in the
near-$5 trillion a day market. A number of banks have reported
results boosts from trading since the Brexit referendum in June.
(Reporting by Karin Strohecker and Patrick Graham; Editing by