20 January 2018
Paul Blank

e-Trading thoughts

Paul Blank - TradAir

30Posts 157,567Views 1Comments
Finance 2.0

Finance 2.0

A community for discussing the application of Web 2.0 technologies to financial services.

Global FX vol reaches Four Trillion USD according BIS Survey

01 September 2010  |  5385 views  |  0

The Bank of International Settlements (BIS), has just released the latest 2010 Triennial Survey survey of global FX market volumes (the most authoritative survey of global FX market activity)

Headline items from the survey are: (full  report available here)

  • Global FX turnover was 20% higher in April 2010 than in April 2007, with average daily turnover of $4.0 trillion compared to $3.3 trillion
  • Surge in Spot Activity: The increase was driven by the 48% growth in turnover of spot transactions, which represent 37% of foreign exchange market turnover. Spot turnover rose to $1.5 trillion in April 2010 from $1.0 trillion in April 2007
  • Bank to client volumes exceeded Bank to Bank volumes For the first time: Activity of reporting dealers with other financial institutions surpassed inter-dealer transactions (ie transactions between reporting dealers). Other Financial Institutions, a category that includes non-reporting banks, hedge funds, pension funds, mutual funds, insurance companies and central banks, grew by 42%
  • London remains top: London retained position as top global center with 37% of global volumes, followed by NY with 18%
  • Top currencies: USD, EUR and JPY remain the top traded currencies (up3% over 2007), with
  • EURUSD: 27%
  • USDJPY: 14%
  • GBPUSD: 9%

Unlike the Bank of England surveys, the BIS survey does not break down the trading volumes to show execution by single vs multi bank platform.



Decline in Interbank Volumes: Its interesting to see the continued decline of interbank volumes (dealer to dealer) as a pct of total FX volumes. Which in my opinion is due largely to the top banks improving their etrading systems to enable them to "internalize flow", and reduce the need to hedge positions in the external interbank market. (see my previous blog on internalising FX flows)

Global Daily FX turnover 1989 to 2010 TagsTrade execution

Comments: (0)

Comment on this story (membership required)

Latest posts from Paul

Talk of ICE exchange to buy FX platform Fastmatch

20 July 2015  |  6918 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Why SDPs should provide TCA tools for buy-side clients

13 July 2015  |  3008 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Review of major FX Platforms volumes for June 2015

12 July 2015  |  3205 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Paul's profile

job title e-Trading Solutions
location London
member since 2007
Summary profile See full profile »
Commentator on all aspects of developments around eTrading solutions for banks, looking at the business needs and real-world trading problems of clients. Typically our clients are banks, and trad...

Paul's expertise

Member since 2007
30 posts1 comments
What Paul reads

Who's commenting on Paul's posts