Latest Forex Volume Data from the Fed

Last week, the NY Fed released their latest FX volume data which goes back to October.

My friend Rhonda Staskow has compiled some great charts illustrating the breakdown of foreign exchange trading in the US, UK, Australia, Canada and Singapore.

Bottom line is that volume continues to rise in the spot market as currencies become a bigger story. The EUR/USD and USD/JPY are 2 most actively dealt currency pairs in NY trading. The following charts are for NY trading but here is her full powerpoint presentation.

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4 Comments

  1. Informative charts. The relative volume gives a good indication of both liquidity and the resulting spreads typically offered by broker-dealers. Smallest spreads on the largest volumes…

    Perhaps not as obvious, I think it’s really interesting that in the Singapore numbers, the fraction of transactions that were derivatives/options is much higher than in any other exchange. Is there an underlying reason for this? does that market have a market maker that the others dont?

    Reply
  2. Hi –

    In reply to the Singapore derivatives data, Singapore did make a concerted effort many years ago to promote itself as a derivatives center. If you go back far enough, I believe (without looking up the numbers) Hong Kong and Tokyo were both bigger in traditional and derivative foreign exchange. Hong Kong lost in both areas, while Tokyo lost some of the volume in the derivatives area where they had ranked number three at one time. Singapore became the Asian regional center for derivatives, surpassing the other Asian centers.

    In reply to the missing zero’s – I used the raw data that each individual foreign exchange committee provided. While I did try to standardize the presentation by going back over the last few reports, to provide comparable data for each 6 months Apr 2007 to Oct 2008 for individual countries, I did not standardize the manner in which each committee presented the numbers, so in short, some zeros are missing.

    Regards, Rhonda

    Reply

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