Forex settlement volumes rise in August - CLS

LONDON, Sept 4 (Reuters) - The average number of daily foreign exchange payment instructions rose in August from the previous month, data from FX settlement system CLS Bank showed on Friday.

The average volume of payment instructions was 589,446, with an average value of $3.33 trillion in August. Volumes were up 3 percent from 572,214 in July, although the average value was down 0.3 percent from $3.34 trillion the previous month, it said.

Average foreign exchange volumes peaked at a record 727,934 last October, but hedge funds and some other liquidity providers in the market had reined in activity due to ongoing financial turmoil.

In the second quarter, the average daily volume during the three months to June was 580,585 and an average daily value of $3.29 trillion.

More than 6,000 brokers, funds and corporates use the CLS Bank service.

Edting by Andy Bruce