FX Volumes up in US - New York FX Survey

The North American Foreign Exchange Committee has published the results of their latest survey for daily trade volume in 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. The results were positive YoY however there was a decline from October 2011.

The dismal start to trading volumes in 2012 was reinforced by the NAFXC FX survey, daily trade volumes in all FX products were $859.8 billion a decline of 12% from the last survey in autumn 2011.

Spot FX which is takes the largest market share of instruments had a total of $429.7 billion in April, this was down 2.4% from April 2011. Currency forward transactions totalled $148.99 billion, up 11.2%.

April was a poor month for institutional FX flow as ECN Hotspot had a decline of 15%. We saw the retail FX players maintain volumes although there was intense 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 due to the Euro Zone crisis.

The North American Foreign Exchange Committee gathers data from leading FX players when compiling its survey. The participants include: Bank of America, Bank of Montreal, The Bank of New York, Bank of Tokyo-Mitsubishi, Barclays Capital, BNP Paribas, Citigroup, Canadian Imperial Bank of Commerce, Calyon, CSFB, Deutsche Bank AG, Goldman Sachs, & Co., HSBC Bank USA, JP Morgan Chase Bank, Mizuho Corporate Bank, Morgan Stanley Royal Bank of Canada, Royal Bank of Scotland, Skandinaviska Enskilda Bank, Société Générale, Standard Chartered, State Street Corporation, Sumitomo Mitsui Banking Corporation, UBS Bank and Wells Fargo Bank N.A.

AVERAGE DAILY VOLUME

Spot transactions 429,661

Outright forwards 148,990

Foreign exchange swaps 247,775

Over-the-counter foreign exchange options 33,419

Total 859,845