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

The London 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 Joint Standing Committee (FXJSC), administered by the Bank of England (BoE), has released its semi-annual survey of foreign exchange (FX Turnover FX Turnover FX turnover is the sum value of all transactions performed in the foreign exchange market during any specific time although, generally, they are computed monthly. When used in a technical analysis application, FX turnover measures the efficiency and magnitude of asset allocations while a growing turnover is a defining trait of an active bullish market. In forex trading, the volume histogram is one of the most utilized indicators to measure FX turnover. This construct helps plot trading volumes t FX turnover is the sum value of all transactions performed in the foreign exchange market during any specific time although, generally, they are computed monthly. When used in a technical analysis application, FX turnover measures the efficiency and magnitude of asset allocations while a growing turnover is a defining trait of an active bullish market. In forex trading, the volume histogram is one of the most utilized indicators to measure FX turnover. This construct helps plot trading volumes t Read this Term 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.

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.

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.