Pension funds boost FX trading volumes

Foreign exchange trading volumes increased in 2005 thanks to a considerable boost from fund managers, pension funds and non-traditional FX traders like the so-called "aggregators" that facilitate retail trading, but the market could not maintain the 25% growth rate set in 2004.

This article appears courtesy of Global Investor.
By Claire Milhench

Global FX trading volume rose by 14% in 2005, according to a new report by Greenwich Associates. As the recent acceleration in hedge fund trading activity stalled, fund managers and pension funds picked up the slack by increasing the amount of FX trading in connection with cross-border investments and by becoming more active traders of FX as an independent asset class. Another significant portion of the year’s growth was generated by relatively new sources of FX trading volume.

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