News Release
The UK Foreign Exchange and Over-the-Counter Derivatives Markets in April 1998
29 September 1998
In April this year, the Bank of England again conducted its triennial survey of turnover in the UK foreign exchange and over-the-counter (OTC) derivatives markets as part of the latest world-wide survey organised by the Bank for International Settlements (BIS). All comparisons are with the previous survey in 1995 and are explained in US$bn, unless otherwise stated. The main findings of the UK survey are:
- Average daily spot and forward foreign exchange turnover was $637bn, 37% higher than the $464bn per day recorded three years before (an annualised growth rate of 11%).
- Average daily turnover in the UK for OTC currency and interest rate derivatives was $171bn, 131% higher than the $74bn per day recorded three years before (an annualised growth rate of 32%).
- Average daily turnover in the OTC derivatives market is around a quarter of that in the foreign exchange market, up from 16% in 1995.
- The forward foreign exchange market continued to grow more rapidly than the spot market, which now represents only 35% of total foreign exchange turnover.
- Within OTC derivatives products, interest rate swaps business grew by 271% and now accounts for 40% of the overall market (up from 25%).
- The OTC derivatives market is more concentrated, in terms of principals' market share, than the foreign exchange market and has become more concentrated since the previous survey. The top twenty's share of the OTC derivative market rose from 74% to 82%, and the top twenty's share of foreign exchange turnover increased from 68% to 69%.
Many other central bank participants in the global survey are also publishing their results today (see the BIS's website http://www.bis.org/publ/r_fx98.htm). The BIS intends to publish an analysis of the size of the global market probably in mid-October. The November issue of the Bank of England Quarterly Bulletin will provide comprehensive statistics for the UK. Aggregate data for the main sections of the UK survey will be included in this article.
Key Resources
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Summary of Results Download PDF |
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Full UK Results Download PDF |
