UK’s Foreign Exchange Committee Survey Shows Tepid Increase in FX Volumes

The semi annual survey showed a slight 3% YoY increase in volumes, though they have fallen over the past 6

The London Foreign Exchange Joint Standing Committee (FXJSC), administered by the Bank of England (BoE), has released its semi-annual survey of foreign exchange (FX) turnover in the UK, a composite tracking twenty-nine dealing banks in London, per a BoE filing.

To unlock the Asian market, register now to the iFX EXPO in Hong Kong.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

For the month ending October 2016, average daily volumes came in -2.0% lower relative to April 2016. This was offset by growth over a YoY basis, justifying 3.0% YoY since October 2015. In addition, the average daily reported UK FX turnover was $2.18 trillion per day in October 2016.

Suggested articles

FXPRIMUS Celebrates 10-Year Anniversary with a Grand Gala in Kuala LumpurGo to article >>

Overall, the latest semi-annual survey results show that London retains a market share of roughly 40.0% of FX activity. In a recently released survey in North America from the New York Fed, volumes in the region also fell -1.3% in October 2016, though they were higher on a YoY basis.

The primary culprit for the decline in October 2016 in the UK was attributed to a falling volume of FX spot, or -8.0% since April 2016, to $692.0 billion per day. Conversely, most other FX products notched a tepid increase in turnover in October 2016 – furthermore, FX swap turnover incurred a -2.0% decline from April 2016 to $1.02 trillion per day.

In terms of currencies, the USD/JPY turnover pared its recent rise in October 2016, losing nearly -16.0% of its volumes from April 2016 to $302 billion per day. The USD/AUD turnover also continued its decline, falling -10.0% since April 2016. Finally, the GBP/USD turnover rose 8.0% to $281 billion per day, while the USD/CNY turnover stagnated at $40.0 billion per day.

The entire semi-annual survey can be read in full by accessing the following link.

Got a news tip? Let Us Know