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


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.

BofE SDP-MDP volumes

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.

 BofE Vol by Client Segment

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.

BofE Vol by Client Segment (SDP vs MDP)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

8 Responses

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

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

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

  4. […] 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) […]

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

  6. […] 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 […]

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

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