Download This PaperThe $4 Trillion Question: What Explains FX Growth Since the 2007 Survey?
16 Pages Posted: 22 Aug 2012
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: Suggested Citation
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