The final draft of the 2010 Bank of International Settlements (BIS) survey was published last week. (The Sep release was just preliminary). None of the data changed at the top level. A significant piece of new data added is listed below in bold, the first bullet:
– Market value of OTC FX positions almost doubled. Positions held with non-banks also surpassed positions among banks for the first time.
– Global FX market grew by 20% from 2007 to 2010, driven by a 48% increase in Spot volumes. Average daily volume was $4.0 trillion/day in April 2010.
– There was a 42% increase in trading by “other financial institutions”, such as funds. For the first time, non-bank volume surpassed volume among banks.
– FX market activity became more global, with cross-border transactions representing 65% of trading activity in April 2010.
– 66% of volume was in just six currency pairs: EUR/USD (28%), USD/JPY (14%), GBP/USD, AUD/USD, USD/CAD and USD/CHF.
– BIS estimate that exchange-traded FX derivatives such as CME FX futures would add a further $166bn/day.
Many of you have asked to see a video of the presentation we gave at the Profit & Loss conference in Chicago. (Topic: What Can FX Learn from Equities?). This is now available on our website at: