Global FX Volumes Jump 30%, Latest BIS FX Triennial Survey

There was no surprise when the BIS announced their latest results for global FX volumes for 2013. Despite, the world economy facing a miserable aftermath from the 2008 credit crisis, FX as an asset class has served well. Total daily trading volumes are averaging $5.345 trillion according to the study published today, a 30% increase from three years earlier.

Key points:

• FX swaps most popular asset class $2.2. trillion of ADV.
• US dollar most popular currency pair, 87% of all trades.
• Emerging market currencies on the rise, Mexican peso and Chinese yuan enter top 10 most traded currency pairs

The sharp rise in FX activity is attributed to several factors including; market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, acceptance of FX as an asset class and global distribution of the product. Cyril Tabet, Partner & CEO at JFD Brokers, believes the quality of the end product will have a direct impact on volumes, and explained in a comment to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates: “Sustaining high standards in technology, execution, transparency, and support have proven to significantly drive volumes up.”

The 2013 BIS survey is a three-year study on the trading metrics of Foreign Exchange derivatives. The organisation that has been operating since the 1930's sits as a central body for the worlds central banks. According to the BIS's US section on its website, it describes the organisation as one that; 'fosters international monetary and financial cooperation and serves as a bank for central banks'. The BIS has been actively conducting the triennial FX survey since 1989. In the current survey the BIS has surveyed organisations from 53 jurisdictions.