LONDON, April 19 (Reuters) - Foreign exchange trading volumes rose to a record high in the first three months of the year, data from CLS showed on Thursday, as a rise in volatility from multi-year lows encouraged more currency trading.
CLS, a major settler of trades in the foreign exchange market, said in a statement that the average daily traded FX volumes submitted to it reached $1.87 trillion between January and March, surpassing a previous high of $1.67 trillion in the first quarter of 2013.
Daily volumes in March reached $1.855 trillion, down 4.8 percent on February but up on a year earlier.
As well as volatility, CLS attributed the rise in volumes to a trend of more buy-side firms like asset managers using its services.
Volatility across financial markets spiked in February after years of being low.
However, while volatility in other asset classes has remained elevated, driven in part by concerns about a possible U.S.-China trade war and a rise in interest rates, foreign exchange markets have been much quieter, with trading of key currency pairs stuck in narrow price ranges. (Reporting by Tommy Wilkes; Editing by Toby Chopra)