Global FX Volumes: Top six centers, what’s the story?


The major central banks representing the top six FX trading centres have now published their semi-annual FX volume surveys data for April 2014, so what’s the story?

Key findings from top 6 FX centres:

  • Total daily FX vol up 4.3% at $4,530bn/day in Apr 14 ($4,345bn/day in Oct 13), although still down -9.7% YonY
  • Spot vol down -26.6%  YonY, whilst NY spot volume is down even more at -32.2%
  • Top 6 trading centers share of total global FX rose to 85% compared to 80% in 2010 (compared BIS 2013 & 2010 triennial data)
  • Compared to six months ago:
    • London +6.6%, Singapore 7.6% & Canada +9.1%
    • NY -0.6%, Australia -0.9% & Japan 2.6%
  • Compared to a year ago:
    • Japan +4.3%
    • NY -19.5%, London -8.8% , Australia -7.9% , Singapore -5.5% & Canada -5.1%
  • London SDP flows 11% of total (down from 13%) & MDP flows at 13% (up from 12%): SDP/MDP 85% (107% in Oct 13)
  • Canada SDP flows 13% of total (down from 15%) & MDP flows at 8% (up from 7%): SDP/MDP 163% (214% in Oct 13)

Looking in more detail we can see;

Comparing: Total FX Volumes

Top 6 FX Trading Centres Apr 14Table 1: showing ave daily FX vol for top 6 trading centres (source Official central bank data)

 

Comparing: FX Volumes/Product

The table 2 below shows volumes by product, as expected London has the lions share of all trading, the only center coming close being NY in FX Fwds which was just 2% below London (shown in blue in table below).

Top 6 FX Trading Centres Pct by product Apr 14Table 2: showing ave Pct share of top 6 centres/product (source Official central bank data)

The table 3 below show the 6mth Pct share for each region by-product. Although overall FX Spot volumes are only down -2.2%, big differences with Australia, London and Canada up, whilst NY, Sing and Japan all show double digit falls.

Top 6 FX Trading Centres change in Pct by product Apr 14Table 3: showing 6mth Pct change in share of top 6 centres/product (source Official central bank data)

The table 4 below show a very different 12mth YonY, with overall Spot volumes down some -26.6% YonY, with NY showing a huge -32.2% drop.

Top 6 FX Trading Centres change in Pct by product YonY Apr 14Table 4: showing Year on Year Pct change in share of top 6 centres/product (source Official central bank data)

 

Comparing: SDP vs MDP flows

Unfortunately only Canada and UK break out volumes by SDP and MDP. I have already covered the UK FX survey data at some length, so lets look at the Canadian data.

Canada SDP account for 13% of flows compared to MDPs at 8%, with an SDP/MDP ratio of 163% (down from 214% in Oct 13)

Table 5 below shows the pct of total flows by SDP and MDP for each product, and within that by each client segment. The color coding is as follows:

Green = SDP > MDP flow for either the product as a whole and/or for the client segment for that product
Pink =   MDP > SDP flow for either the product as a whole and/or for the client segment for that product

 Canada SDP vs MDP Pct of total flows Apr 14Table 5: showing Pct of total flows by SDP and MDP by-product and client segment
(source Official Bank of Canada survey data)

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