The $4 Trillion Question: What Explains FX Growth Since the 2007 Survey?

16 Pages Posted: 22 Aug 2012

See all articles by Michael R. King

Michael R. King

Gustavson School Of Business

Dagfinn Rime

BI Norwegian Business School

Date Written: December 1, 2010

Abstract

Daily average foreign exchange market turnover reached $4 trillion in April 2010, 20% higher than in 2007. Growth owed largely to the increased trading activity of “other financial institutions”, which contributed 85% of the higher turnover. Within this customer category, the growth is driven by high-frequency traders, banks trading as clients of the biggest dealers, and online trading by retail investors. Electronic trading has been instrumental to this increase, particularly algorithmic trading.

JEL Classification: F31, G12, G15, C42, C82

Suggested Citation

King, Michael Robert and Rime, Dagfinn, The $4 Trillion Question: What Explains FX Growth Since the 2007 Survey? (December 1, 2010). BIS Quarterly Review, December 2010. Available at SSRN: https://ssrn.com/abstract=1727410

Michael Robert King (Contact Author)

Gustavson School Of Business ( email )

University of Victoria
Business & Economics Building, Room 246
Victoria, British Columbia V8W 2Y2
Canada
250-721-6425 (Phone)

HOME PAGE: http://https://www.uvic.ca/gustavson/faculty/faculty/faculty/current/kingm.php

Dagfinn Rime

BI Norwegian Business School ( email )

Nydalsveien 37
Oslo, 0442
Norway
+47-46410507 (Phone)

HOME PAGE: http://home.bi.no/dagfinn.rime/

Register to save articles to
your library

Register

Paper statistics

Downloads
496
Abstract Views
2,368
rank
55,961
PlumX Metrics