Manfred Wiebogen President ACI  The Financial  Markets Association
Manfred Wiebogen President ACI The Financial Markets Association

BIS confirms further growth in FX volumes

On September 1st, the BIS (Bank for International Settlements) published the preliminary results from their triennial report on International Foreign Exchange Markets. This survey confirms that the world’s largest financial market experienced further expansion, albeit at a lesser percentage than before. Nevertheless, it also confirms that the FX market was not affected by the financial crisis.

In short, the daily traded FX volume increased from USD 3,3 trillion in 2007 to USD 4 trillion in April 2010 – this represents a 20% gain, which was markedly less than the 71% increase observed between 2004 and 2007.  The FX market is larger than all the other financial markets combined. More importantly, it enables liquidity to be efficiently distributed around the globe and remains essential for a sustainable economic growth.  Drivers The increase in turnover was driven by a 48% growth in Spot transactions, which represent 37% of the FX market and reached USD 1.5 trillion. Another staggering increase was noted in the outright forward segment (+31%), whereas growth in the largest segment of FX Swaps was flat. Meanwhile, a marginal decrease of 2% was registered in FX Options.  In a first reaction to the release, Stephane Malrait, MD Global Head of eCommerce at SocGen London and member of the ACIFXC (ACI FX Committee) summarized a significant increase of client flow in Europe and...continued

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