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Bank of England survey of FX turnover in the UK shows little change in overall volumes

First Published 26th January 2017

The BoE's semi-annual survey of FX turnover in the UK - 29 dealing banks in London - was released this week. The report shows volumes 2% lower in October 2016 compared to April 2016, but 3% higher than in October 2015. The total volume traded was 2.18 trillion USD, suggesting London has a market share of roughly 40% based on the most recent BIS data.

By product, volumes declined in spot and swaps, but rose in forward outrights, NDFs and options (all relative to April 2016).

By currency, GBP saw a larger share of overall FX trading, accounting for 17% of daily turnover compared to 15.6% in April. This surely reflects the "Brexit" referendum in June and ensuing depreciation of sterling.

There were no other notable changes. Trading in the majors continues to be dominated by the G4 (USD, EUR, JPY, GBP) and the most liquid EM currencies remain TRY, CNY, SGD and MXN.