BIS explains market growth
The Bank for International Settlements has explained what it sees as the factors behind the robust growth in the FX market. I won’t regurgitate the whole of the latest BIS Quarterly Review – I’m paid by the word and my editor won’t wear such a blatant attempt to get a Christmas bonus. If you want to see the whole thing, follow this link: http://www.bis.org/publ/qtrpdf/r_qt0712.htm.
BIS concludes that there seem to be some structural changes taking place that will help maintain the market’s expansion. This includes the entrance of new participants and the growing importance of emerging market currencies. It also believes that there is less distinction now between market-making banks and other financial institutions.