Central Bank FX Semi annual surveys Oct 14: Record vols seen in 5 out of 6 top centres


The major central banks reported their latest semi-annual FX survey results for Oct 14 today.

Record high daily volumes were reported for London ($3.097bln/day +12.3%), NY ($1,096bln/day +35.1%), Singapore ($481bln/day +30.1%), Japan ($374bln/day +3%) and Canada ($67bln/day +8.5%) with only Australia showing a fall ($151bln/day -14%). London once again dominating the FX market, with volumes in London approaching 60% of global daily volumes.

Top 6 FX centres Apr-Oct 14

 

Top 6 Global FX centres

Top Global FX Centres (based on Central Bank FX Semi annual FX survey data for Oct 14)

A quick look at the trend in volumes by instrument shows that FX Spot has overtaken FX Swaps as the biggest traded product for the first time since Oct 11 (as can be seen by the red circles). This may be related to regulatory exemption from reporting and lower capital costs for trading Spot FX.

Top FX products

 

Top Global FX products

Looking at volumes by client segments and comparing London with NY, we can see that in NY all client segments showed healthy gains, whilst in London only reporting dealers and other financial institutions (including: Hedge Funds, Asset Managers, Pension and Insurance companies – those with a fiduciary responsibility to manage other people’s money) showed gains, possibly driven by increased volatility leading to increased trading volumes.

Reporting Dealers: London + $183bln/day (+14%) and NY: + $143bln/day (+47%)
Other Financial Institutions: London + $218bln/day (+32%) and NY: + $141bln/day (+39%)

Other banks (non-reporting dealers-smaller 2nd tier banks) and non-financial institutions (mainly corporate clients) showed falls in London, but gains in NY, as follows:

Other Banks: London -$48bln/day (-7%) and NY: +$45bln/day (+22%)
Non financial institutions: London -$15bln/day (-13%) and NY: +$28bln/day (+28%)

Lon & NY volume by client segment

Daily volume by client segment for London & NY

Also worth noting that Other financial institutions has now overtaken other banks to become the second largest client segment after reporting dealers, and continues to drive growth in volumes. In subsequent posts we will drill a little further into this data.

One Response

  1. Thanks Paul always appreciate your updates.

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