Paul Murphy, FT Alphaville, London’s extraordinary lead in FX, here.
The following is not for distribution in the United States
The triennial central bank survey of foreign exchange and derivatives market activity from the BIS is out.
BIS, Triennial Central Bank Survey, Sep 2013, here. Looks kinda good to me so far. I will keep reading.
The Ducks … are on the pond
Trading in OTC interest rate derivatives markets averaged $2.3 trillion per day in April 2013. This is up
from $2.1 trillion in April 2010 and $1.7 trillion in April 2007. Interest rate swaps were the most actively
traded instruments in 2013, at $1.4 trillion per day, followed by forward rate agreements at $0.8 trillion.
The growth of interest rate derivatives trading was driven by financial institutions other than
reporting dealers. Trading between dealers and non-financial customers contracted between the 2010
and 2013 surveys. So too did inter-dealer activity, which at 35% in 2013 accounted for the lowest share
of total turnover since interest rate data were first collected in 1995.