London Continues to Dominate the World of FX Market

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Bank Of England, PRA

London Continues to Dominate the World of FX Market, FX Volumes Reaches New Daily Record of $2.73 trillion

July 26, 2018

Federal Reserve Bank of New YorkLondon’s dominance in the world of forex market continues to remain unabated, as trading volume coming out of London in the past six months have climbed 15 per cent and 14 per cent from the year ago to $2.73 trillion in April. The London’s volume is responsible for nearly 40 per cent of the global forex trading volumes. The latest statistics by Bank of England is presented in its latest triennial report on the FX market.

The latest figures confirm the London as world’s biggest currency trading hub and with daily volume of more than double that of its nearest rival, New York. The latest figure is higher recorded since the survey began in 2014 and best than its previous record of $2.71 trillion set in October 2014.

According to the survey, the upside trend in volumes was recorded across all major currencies probably due to heightened market volatility. Daily turnover in EUR/USD pair was the highest among the currency pair which rose by 11 per cent to $778 billion per day and had a market share of 29 per cent. The turnover in GBP/USD rose to 351 billion, up by 18 per cent from October 2017 and almost double from last year.

FXSpotStreamAssisted by the increase in volatility of the Fx market in the month of June, foreign exchange trading venues and exchanges across the world managed to post some healthy operational metrics.

FXSpotStream, a bank-owned consortium that provides the infrastructure to facilitate the route of trades from clients to liquidity providers, announced that its reported trading volumes grew at the fastest rate of all eFX cash venues in the first half of 2018, at 49% percent.

The currency turnovers in North America, another major currency trading hub posted strong gains from year-ago levels, as the data released by New York Federal Reserve semiannual survey released on Tuesday. Across Atlantic, the daily currency trading volumes averaged $993.55 billion in April, up 11.7 per cent from a year ago levels, the New York Fed said.

Gain CapitalGain Capital (NYSE: GCAP) has reported a healthy uptick of trading volume across its both retail and institutional segments in May following slow months. The growth in trading volumes was reported despite a decrease in the active number of clients signifying more trade per client.

Thomson ReutersMeanwhile, Thomson Reuters (NYSE: TRI), during the month of June 2018, witnessed total average daily volume of its Foreign exchange products, including spots, forwards, swaps options and non-deliverable forwards (NDF) at $452 billion, an increase of 4.5 per cent month-on-month from $432 billion in May 2018. And, a growth of 17 per cent in the same interval a year ago. 

According to another survey on the same grounds conducted by the Foreign Exchange Market Committee in Singapore, average FX daily volume in April 2018 is estimated at $534 billion which is 8 per cent higher from last year, April 2017.

GMO ClickGMO Click reported its monthly operational metrics for the month of April 2018. The broker witnessed a steep decline in its over-the-counter (OTC) Fx trading volume, despite an increase in the number of client accounts. GMO Click Securities is the world’s largest Fx provider in terms of volume since 2012.

The Canadian Foreign Exchange Committee (CFEC) also reported daily average currency turnover activity if $95 billion in April 2018, where a major part of the turnover was reported in Forex swaps at $60.5 billion ( up by 23.2 per cent), spot volumes were recorded at $20.7 billion (up by 15.6 per cent) and outright forwards were stable at $13.6 billion.

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