UK foreign exchange activity fell 11% over the
course of last 3 years, but London managed to keep the global foreign
exchange leadership position, the report from the Bank of England in
cooperation with the Bank for International Settlement showed.
London - The Bank of England has released
the UK part of the survey on global foreign exchange market activity
conducted by the Bank for International Settlement (BIS) in Basel that
confirmed the position of London as the largest foreign exchange centre.
The so-called Triennial BIS survey coordinated globally showed the average daily turnover in foreign exchange market in the UK to fall 11% to $2,426 billion during April 2016, down from the average daily turnover of $2,726 billion recorded for April 2013.
United Kingdom remains the single largest centre of foreign exchange
activity with 37% of global turnover in April 2016, decreasing from 41%
in 2013, the data from the Bank of England (BoE) showed on Thursday.
decrease was driven by a fall in the foreign exchange spot
transactions, which fell 24% since last survey in 2013. Average daily
turnover in options and forward transactions also decreased, down 37%and
14% respectively, the report also showed.
In contrast, turnover
in foreign exchange swaps increased by 3% and remain the largest traded
foreign exchange item in the UK, accounting for 48% of all trades.
Turnover in currency swaps also increased, up 125%, although account for
just 3% of total turnover, the report from BoE also noted.
daily turnover in the over-the-counter (OTC) interest rate derivatives
was $1,181 billion during April 2016, a 12% decrease on the $1,348
billion recorded for April 2013.
The UK is no longer the largest
centre for OTC interest rate derivatives activity, with 39% of OTC
interest rate derivatives activity taking place in the United Kingdom,
compared with 41%in the US.
Turnover in interest rate forward rate
agreements decreased 21%, whilst turnover in interest rate swaps and
interest options decreased 5% and 39%respectively. Interest rate swaps
remained the most traded interest rate derivative, accounting for 64% of
total OTC interest rate derivatives turnover in April 2016.