Latest BofE FX survey data: FX vols down 6%, SDPs continue to outperform MDPs

Posted on January 30, 2013 by Paul Blank

The Bank of England today released their latest semi-annual FX turnover survey results for October 2012.

Highlights

Daily FX vol $1,919bln, down 6% on April 2012, (7% down YoY)

Spot vols down 6% to $678bln/day

Execution via Single Dealer Platforms (SDPs) continues to outperform Multi Dealer Platforms (MDPs).

SDP vs MDP flows

SDP vol: $277bln/day, down 2% on April 2012, and 7% down YoY

MDP vol: $206bln/day, down 3% on April 2012, and 11% down YoY

Coverage of previous BofE survey data here

The ratio of FX flows being executed via SDPs compared to MDPs reached 134%, compared to the lows of 114% back in oct 2010 as shown by the continues red line in chart below.

Chart showing SDP and MDP vols (source: Bank of England Survey data)

Client Segment Flows

In terms of client segments, the ratio of flows are broadly unchanged, with Reporting Dealers continuing to account for ~ 50% of total daily volumes as shown in the chart below.

Chart showing pct of flows by client segment (source: Bank of England Survey data)

Client Segment Flows by SDP & MDP

When looking at the execution preferences of each client segment, reporting dealers are increasing the proportion of flows via SDPs, whilst other bank’s seem to be switching flows to MDPs.

Chart showing pct of flows by client segment via SDP vs MDPs (source: Bank of England Survey data)

Full Bank of England Survey Data here

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results, Web trading technology |

8 Responses

FX Options Platforms « SingleDealerPlatforms.org, on February 8, 2013 at 12:52 pm said:

[…] to the latest Bank of England FX survey data, FX options account for $102bln/day (about 5.3% of total […]

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BNY takes stake in FastMatch FX ECN « SingleDealerPlatforms.org, on February 12, 2013 at 10:40 am said:

[…] there is only so much FX business to be carved up, and platforms don’t have long to prove they can generate ‘critical core […]

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Leading FX platforms report strong increases in volumes « SingleDealerPlatforms.org, on February 18, 2013 at 9:54 am said:

[…] contrast the BofE semi-annual FX vol survey released last in Jan showed a 6% decline in FX vols from Apr to Oct […]

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MarketPrism view on SDPs | SingleDealerPlatforms.org, on April 19, 2013 at 12:50 pm said:

[…] For example, according to Bank of England data cited by research and consulting firm Celent, SDPs have overturned rapidly, growing MDP volumes from several years ago to post 54% of all FX transaction volumes in the UK in 2012. (Caplin post on SDP volumes outpacing MDPs here) […]

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Single-dealer platforms: No longer the realm of innovators & early adopters | SingleDealerPlatforms.org, on May 21, 2013 at 10:00 am said:

[…] When SDP’s continue to outperform multi-dealer platforms even when FX volumes are down […]

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Is FX heading for Equity style ‘All-2-All’ market? | SingleDealerPlatforms.org, on July 17, 2013 at 1:56 pm said:

[…] centre, the Bank of England FX survey data doesn’t show the same trend as the BIS data. The Bank of England Semi annual FX survey chart is shown below, clearly shows a stable Deal-Dealer share of FX. Although this is for all FX […]

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BofE FX Survey Data shows record $2,547bln/day (very interesting read) | SingleDealerPlatforms.org, on July 30, 2013 at 11:53 am said:

[…] Coverage of previous BofE survey data here […]

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Top blog posts for 2013 | SingleDealerPlatforms.org, on December 19, 2013 at 6:26 pm said:

[…] Latest BofE FX survey data: FX vols down 6%, SDPs continue to outperform MDPs […]

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