The New York Foreign Exchange Committee (FXC) today released the results of its ninth Survey of North American Foreign Exchange Volume. For the October 2008 reporting period, average daily volume in total over-the-counter foreign exchange instruments (including spot transactions, outright forwards, foreign exchange swaps, and options) was $762 billion, an increase of 8.7% compared with the October 2007 reporting period.
Meanwhile, the FXC reports that average daily volume in spot transactions was 27% higher than in October 2007, more than offsetting declines in the average daily volume in foreign exchange options and swaps of 35.4% and 16.4%, respectively.
Average daily volume for non-financial customers across instruments fell 27.6% relative to October 2007, whereas the volume for reporting dealers, other dealers, and other financial customers rose modestly, by 11.2%, 15.1%, and 7.4%, respectively.
The FXC also reports that average daily ticket volume rose 80.6% versus October 2007, resulting in an average trade size of $1.8 billion compared with $3.0 billion, and spot market transactions conducted by the top quintile of dealers by market share rose to 79.3% from 64.7% a year earlier. Percentages in all other quintiles declined, suggesting increased market concentration.
“Amid challenging global financial market conditions, the October 2008 survey shows that total foreign exchange volume remained robust and, in fact, increased further relative to the last survey,” says Richard Mahoney, chair of the Foreign Exchange Committee. “I am confident that the latest survey will provide its audience with timely insight into the impact that recent events have had on the foreign exchange market.”
The Foreign Exchange Committee launched its inaugural Survey of North American Foreign Exchange Volume in October 2004 in order to provide the market with frequent information on the size and structure of foreign exchange activity. In collaboration with the Foreign Exchange Joint Standing Committee in London, the FXC agreed to collect one month’s foreign exchange turnover data covering customer, product, currency pair, and execution data in April and October.