The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Volumes: Spot the difference

Various semi-official bodies released volume figures this week, providing a useful picture of the health of the market.

The Foreign Exchange Committee, which meets under the auspices of the New York Fed, reports that average daily turnover in October of 2008 of all FX instruments rose 8.7% to $762 billion when compared with a year earlier. However, not surprisingly, the level of activity in swaps and options declined, falling 16.4% and 35.4% respectively. In contrast, spot volumes were 27% higher. According to the FXC, average daily ticket volume rose 80.6% versus October 2007, and the average trade size fell to $1.8 million from $3 million, showing the impact high-frequency trading had on the market.


The Joint Standing Committee, which meets under the auspices of the Bank of England, reports that total FX turnover in the UK FX market rose 21% from a year earlier to $1.679 trillion. This was 8% lower than April 2008. Spot volumes rose by 43% on the year, but swaps declined by 10% and option volumes fell by 12%.

Overall, the level of activity is astonishing given the excessive volatility seen in October 2007. As has already been reported, volumes did fall off in December 2008, which is nothing out of the ordinary. The likely release of monthly volumes for January from the likes of CME and Icap next week will give better indications about the market’s health as we run into 2009.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree