London Extends Lead in Global FX Volumes; Hits New Records

Daily foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading volumes out of London have climbed by 12 percent from the year prior, to $2.86 trillion in April 2019, the Bank of England said in its latest triennial report on the FX market.

The figure is the highest recorded since the survey began in 2004 and bested the previous record of $2.72 trillion set in April 2018. The results of the latest survey also confirm that London remains the world’s biggest currency trading hub, responsible for nearly 40 percent of global volumes, with daily turnover more than triple that of its nearest rival, New York.

The uptick in volumes traded was across the board for all major currencies, according to the survey, perhaps a reflection of rising 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. Daily turnover in the EUR/USD, the most-traded currency pair, rose by $124 billion or 18 percent to $831 billion per day, according to the survey.

London dominance continues

GBPUSD turnover also jumped by +16 percent, compared with October 2018, posting a record high average daily volume at $376 billion.

Meanwhile, USD/CNY turnover increased in the six months through April 2019, having yielded a record $78.3 billion per day, and also remains ranked the 7th most traded currency pair in London ahead of EURGBP.

The survey also broke down volume by currency pair and showed that EUR/USD accounted for 29.1 percent of trading volumes, up from 27.7 percent in October 2018. This was followed by GBP/USD, which accounted for 13.1 percent of volumes, up from 12.6 percent in the previous survey.

The 28 largest banks active in the UK forex market participated in the survey, which showed that most FX products saw a notable advance since the last survey.

Earlier today, Foreign Exchange Committee (FXC) reported its a semi-annual survey that includes FX data from leading dealers and banks in North American. Per a New York Fed filing, average daily volume in over-the-counter (OTC) foreign exchange instruments was $810.9 billion in April 2019, down 18 percent from the ADV figure in the year before.