Research published by Greenwich Associates suggests that electronic trading volumes doubled to $8 trillion in 2003, although almost 50% of global FX institutions say they still have no intention of trading online. The paper attributes most of the growth to institutions that have dipped their toes in the eFX water over the preceding couple of years before growing in confidence and pushing larger volumes over the platforms in 2003.
According to the report, almost 40% of institutions globally traded FX online last year, up from 32% in 2002. Those that traded online executed 43% of their volume electronically, again up from 32%, which represented 47% of all tickets. While these figures represent strong growth, Greenwich says they underscore the fact that the fundamental purpose of e-trading still exists: to move the bread and butter online so banks can concentrate on more complex, bigger trades.