07 September 2010

The UK increases lead in foreign exchange trading as global turnover jumps a fifth in three years

The UK accounted for 37% of global foreign exchange trading in April 2010 according to the latest triennial Bank for International Settlements survey of foreign exchange and derivatives market activity.

The UK's share was up from 35% three years earlier and 32% in 2004. Its strong international position stemmed from trading generated by prime brokerage, investment banking and hedge funds, three areas of activity that are important to London's position as a global financial centre. The US and Japan were the next largest centres with 18% and 6% of the total respectively. Other large centres include Singapore (5%), Switzerland (5%), Hong Kong (5%) and Australia (4%).

Global foreign exchange market daily turnover averaged nearly $4.0 trillion in April 2010, 20% up three years earlier. The growth was driven by a 48% increase in spot transactions turnover. The increase in other foreign exchange instruments was more modest at 7%. Foreign exchange market activity is becoming more global, with cross-border transactions representing nearly two-thirds of activity in April 2010.

More information on foreign exchange markets can be found in TheCityUK's report Foreign Exchange. A new edition of this report which will include findings from the latest Bank for International Settlements survey is scheduled for release in December 2010.

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