On Monday, the Bank for International Settlements released its Triennial Central Bank Survey, which provides some in-depth insights into the global foreign exchange markets.
As Finance Magnates reported on Monday, the survey revealed that trading in the over-the-counter FX markets averaged $6.6 billion per day in April.
That was a sizeable increase on the BIS’ previous survey in 2016 when it found that OTC FX trading was equivalent to approximately $5.1 billion per day.
The BIS’ other major finding was that Britain continues to be the dominant force in the world’s currency markets. A massive 43.1 percent of all FX trading goes through the Square Mile – a six percent increase on the last BIS survey.
“UK has always been part of our business strategy”
Some were surprised at this finding. Common wisdom seems to have it that Brexit has forever doomed the UK to economic ruin.
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But not everyone is so pessimistic.
Speaking to Finance Magnates, Hormoz Faryar – Equiti Group’s global head of institutional sales – said that London has always been a key component of the brokerage group’s plans.
“The Central Bank survey highlights the importance of the City of London in our business, with the UK showing the highest ever share of FX trading volumes since the introduction of the Eurozone two decades ago,” said Faryar.
“Equiti Group has always seen the UK as a major part of its business and growth strategy and the reported 43% of global FX volumes being in UK confirms this. We believe that London will, in the long run, always be the most important FX business hub – even after Brexit.”