Results from the fourth semi-annual surveys of foreign exchange volume, published simultaneously by the US Foreign Exchange Committee (FXC) and UK Foreign Exchange Joint Standing Committee (JSC), show that the market is continuing to expand strongly.
The NYC found that overall volume in the April 2006 reporting period was up 31.5% on the same period in 2005. Activity in London was even more robust, with the JSC reporting annualized growth up 39%.
“We continue to see accelerating growth in foreign exchange volume, and this survey provides important insight into the composition of this volume,” says Mark Snyder, chairman of the FXC. “Average daily volume is up nearly a third over the past year, and the survey results show a strong increase in electronic trading volume as a percentage of the total. The survey results highlight the relevance of the best practice recommendations published by the Foreign Exchange Committee in June 2006 for participants involved in the electronic trading and autodealing environment.”
Activity in New York increased to an average daily total of $577 billion. London’s dominance of the industry appears to be rising again, with average daily turnover now $942 billion.