In April this year, central banks and monetary authorities in 53 countries, including the United Kingdom, conducted the latest triennial survey of turnover in the markets for foreign exchange and over-the-counter (OTC) interest rate derivatives. The survey is co-ordinated on a global basis by the Bank for International Settlements (BIS), with the aim of obtaining comprehensive and internationally consistent information on the size and structure of the corresponding global markets. The Bank of England conducted the UK survey, which covers the business of leading financial institutions located within the United Kingdom in these markets.
Bank of England has today published the UK survey. The main findings of the UK survey are:
- Average daily turnover in foreign exchange was $3,576 billion in April 2019, compared to the $2,406 billion per day recorded in April 2016. The increase reverses the fall of 12% seen between the 2013 and 2016 surveys.
- The UK remains the single largest centre of foreign exchange activity with 43 per cent of global turnover, up from 37 per cent in April 2016. The distribution recorded in the 2019 survey is broadly in keeping with the UK global market share recorded in previous surveys.
- Average daily turnover in OTC interest rate derivatives was $3,670 billion during April 2019, increasing from the $1,181 billion recorded for April 2016.
- The market share of the UK has increased from 39 per cent in April 2016 to 50 per cent in April 2019. The UK has overtaken the US as the largest centre for OTC interest rate derivatives activity, whereas the US has decreased its global market share to 32 per cent, down from 41 per cent in April 2016. The 2019 survey is in keeping with the UK global market share recorded in the 2010 and 2013 surveys at 47 per cent and 50 per cent respectively.
The Bank of England will provide further detail for the UK at a later date.
The BIS is publishing preliminary global results today, with a detailed analysis to follow in December 2019. Central banks of many other countries are also publishing their own survey results; links to their websites can be found on the BIS website.