BofE FX Survey data: $2,234bln/day (12% down from Apr, but 11% up YonY) – worth reading

The Bank of England today released their latest semi-annual FX turnover survey results for October 2013.

Highlights on overall London FX volumes

  • Total FX vols down 12% since Apr at $2,234bln/day (up 11% YoY)
  • FX Swaps account for 50% of total FX vols (up from 42% in Apr), highest share since Apr 09
  • FX Spot account for 34% of total FX vols (down from 39% in Apr), lowest share since Apr 09
  • Spot FX vol down 24% from Apr at 767bln/day (5% higher YoY)
  • Spot USD/JPY vols 48% lower than Apr at $119bln/day (still 2nd most traded curr pair)

Execution via Multi-Dealer Platforms (MDP) and Single-Dealer Platforms (SDPs) both down approx 9% since Apr

  • SDP vols – 9% (still up 21% YoY), driven by +31% increase in use by Reporting Dealers and +14% by other banks
  • MDP vols -10% (up 53% YoY), driven by +77% rise in Non-Bank Financial Institutions

Detailed analysis and charts on the figures follows below. Continue reading

EBS and Reuters/FXall Oct13 FX vols released

The three main OTC FX platforms have now reported their Oct 13 volumes.

All three platforms saw decline in daily volumes in October, with Reuters and EBS both recording multi year (record low) trading volumes.

Reuters matching and conversational dealing platforms showing the largest fall, down $13bln/day (-11.8%) at $97bln/day from $110bln/day in September, and also showing the largest YoY drop of -19.2%.

EBS which as we reported earlier this week, also hit new all time lows in daily volumes which were down $4bln/day ( -5.2%) at a new low of $77bln/day,  a drop of -16.8% YOY.  

Whilst FXAll volumes were $5bln/day (-4.5%) lower at $106bln/day down from $111bln/day in September, although still up some 12.8% YOY.

FX Vols for Reuters, EBS and FXAll-Oct 13a

BofE FX Survey Data shows record $2,547bln/day (very interesting read)

The Bank of England today released their latest semi-annual FX turnover survey results for April 2013.


  • Record Daily FX vol of $2,547bln, +26%  on Oct 2012, (+26% YoY)
  • Spot vols +38% to $1,006bln/day
  • Rise driven by huge increase in USD/JPY activity up over 100% to $503bln/day – 2nd most active curr pair traded

Execution via Single Dealer Platforms (SDPs) still exceeds Multi Dealer Platforms (MDPs), but MDP volumes surging

  • SDP vols + 32% driven by +58% increase in use by Reporting Dealers and +18% by banks
  • MDP vols +69% driven by +77% rise in Non-Bank Financial Institutions and +71% by reporting dealers

Continue reading

Is FX heading for Equity style ‘All-2-All’ market?

Latest research from GreySpark looks at the regulatory and structural changes that are impacting the global FX market, and draws some interesting conclusions.

The report Trends in FX Trading 2013 (which I haven’t seen, other than in abstract here) looks at the evolution of market structure and reasons behind the decline in dominance of the wholesale dealer-dealer platforms (D2D), and the rise in importance of the dealer-client (D2C) platforms, both Single-Dealer Platforms (SDP) and Multi-Dealer Platforms (MDP).

From what I can see, the paper draws the conclusion that these trends will lead to the development of an equity style All-to-All (A2A) market structure, presumably characterised by central limit order books (CLOBs). Possibly driven by regulation and capital efficiency needs, making it less attractive for banks to market make, although not sure that should follow?

As the abstract from the report states: Continue reading

Fixed Income trading in Asia on Single Dealer Platforms on the rise

Asian Investor has an interesting article regarding the rise of fixed income trading on SDPs.

Although Bloomberg is still the dominant FI platform in the region (trading up to 70% of volumes), Asian Investors are starting to migrate flows to Single-Dealer Platforms for US Treasuries and Sovereign bonds.

According to Gavin Ottery, head of fixed income e-commerce sales at UBS in Hong Kong.

Hundreds of clients in Asia-Pacific have migrated from voice to electronic for both regional and global cash products, and electronic fixed income trading volumes in the region continue to increase year-on-year, with 2012 being a record year. Continue reading

FX multibank platforms mixed Feb volumes figures

Three of the main multi-bank FX platforms have now reported their Feb volumes.

Reuters and EBS showed continued strength, whilst FXall (also owned by Reuters) recorded a new monthly record.

Continue reading

Leading FX platforms report strong increases in volumes

Reuters, FXall and EBS have now all released their FX vols for Jan 2013, with a strong bounce in volumes.

The largest increase coming from Continue reading