Canadian Foreign Exchange Trading Volumes Hit All Time Highs
- The Canadian Foreign Exchange Committee has released its latest survey data showing a divergence with similar economies.
The Canadian 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 Committee (CFEC) has released the latest batch of its survey data on the amount of daily foreign exchange trading volumes across multiple FX contracts. With the survey being released two times a year, the latest data encompasses the data for April 2016.
In the Canadian version of the survey the participants are the country’s largest nine banks that are the primary dealers in the market - BAML Canada, Bank of Nova Scotia, BMO Capital Markets, CIBC World Markets, HSBC Bank Canada, National Bank of Canada, RBC Capital Markets, State Street Canada and TD Securities.
The monthly turnover which included spot FX, FX forwards and FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term totaled $1.6 trillion. Looking at average daily volumes (ADVs), total turnover increased by 18.4 per cent to $77.2 billion in April 2016 from last October and by 3 per cent when compared to last year.
Traditional FX Turnover in Canada, Source: Bank of Canada
The increase in spot FX was marked at 16 per cent to $16.8 billion, while FX forwards rose 10 per cent to $12.7 billion and FX swaps spiked higher by 22 per cent to $47.7 billion.
The total monthly turnover for foreign exchange over-the-counter derivatives which include currency swaps and options amounted to $156.7 billion. Looking at ADV values, the turnover in derivatives rose 42.5 per cent to $7.5 billion. The increase has been materially affected by the revised survey methodology this year, which included not only volumes traded on Canadian desks, but also volumes that have been sold from Canadian desks.
Over-the-counter FX transactions in Canada, Source: Bank of Canada
FX swaps were closer to flat and options rose 88 per cent from the month of October 2015. The average daily volumes (ADV) figures were $ 2.7 billion and $ 4.8 billion respectively.
The Canadian turnover in FX trading is highly correlated to the results from the U.S. survey. In contrast to Australia, where activity has been closely correlated to the exchange rate of the local dollar, the survey’s results in Canada are not mirroring the state of the market despite a relatively similar economic structure to the one in Australia.
The Canadian 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 Committee (CFEC) has released the latest batch of its survey data on the amount of daily foreign exchange trading volumes across multiple FX contracts. With the survey being released two times a year, the latest data encompasses the data for April 2016.
In the Canadian version of the survey the participants are the country’s largest nine banks that are the primary dealers in the market - BAML Canada, Bank of Nova Scotia, BMO Capital Markets, CIBC World Markets, HSBC Bank Canada, National Bank of Canada, RBC Capital Markets, State Street Canada and TD Securities.
The monthly turnover which included spot FX, FX forwards and FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term totaled $1.6 trillion. Looking at average daily volumes (ADVs), total turnover increased by 18.4 per cent to $77.2 billion in April 2016 from last October and by 3 per cent when compared to last year.
Traditional FX Turnover in Canada, Source: Bank of Canada
The increase in spot FX was marked at 16 per cent to $16.8 billion, while FX forwards rose 10 per cent to $12.7 billion and FX swaps spiked higher by 22 per cent to $47.7 billion.
The total monthly turnover for foreign exchange over-the-counter derivatives which include currency swaps and options amounted to $156.7 billion. Looking at ADV values, the turnover in derivatives rose 42.5 per cent to $7.5 billion. The increase has been materially affected by the revised survey methodology this year, which included not only volumes traded on Canadian desks, but also volumes that have been sold from Canadian desks.
Over-the-counter FX transactions in Canada, Source: Bank of Canada
FX swaps were closer to flat and options rose 88 per cent from the month of October 2015. The average daily volumes (ADV) figures were $ 2.7 billion and $ 4.8 billion respectively.
The Canadian turnover in FX trading is highly correlated to the results from the U.S. survey. In contrast to Australia, where activity has been closely correlated to the exchange rate of the local dollar, the survey’s results in Canada are not mirroring the state of the market despite a relatively similar economic structure to the one in Australia.