BIS Triennial Central Bank Survey 2019• Foreign exchange and OTC interest rate derivatives turnover in April 2019

Question 1

what does BIS triennial central bank survey provide?

Answer 1

provide the most comprehensive source of info on size and structure of global fx and otc derivatives markets

Question 2

how often do BIS triennial central bank survey conduct one?

Answer 2

every 3 years starting in 1986 for FX markets and 1995 for OTC interest rate deriviatives

Question 3

what is BIS triennial central bank survey aims

Answer 3

increase transparency in OTC markets and help monitor developments in global financial markets, and help inform discussions on reforms to otc markets

Question 4

BIS triennial central bank survey 2019, who was involved

Answer 4

central banks and other authorities in 53 jurisdictions and collected data from close to 1300 banks and other dealers

Question 5

BIS triennial central bank survey turnover in OTC FX Market

Answer 5

trading in fx markets reached $6.6 trillion per day in april 2019, up from 5.1 trillion in 2016- out paced spot trading
-USD retained its dominant currency being 88% of all trades
-Shares of trade with euro on one side increased to 32%
-jap yen feel by 5% points, while remained the third most actively traded currency (one side of 17% of all trades)

-currencies of emerging market economies gained market share, reaching 25% of the overall global turnover.
-turnover in reminibi grew only slightly faster than aggregate market, remained eight most traded currency

Question 6

BIS triennial central bank survey in OTC FX markets pt2

Answer 6

volume of spots increased compared to 2016 but share of spots fell to 30% from 33%
-fx swaps continued to grow in MS: 49% of total fx market turnover
-fx trading with other financial institutions exceed inter-dealer trading volumes reaching 3.6% in April 2019 (55% of global turnover)
-sales desk in UK, US, HK, and other facilated 79% of all fx trading

Question 7

BIS triennial central bank survey pt 3

Answer 7

daily turnover of OTC interest rate derivatives averaged $6.5tril in April 2019, up from $2.7
-driven by increased hedging and positioning amid shifting prospects for growth and monetary policy
-most of turnover was in shorter-term contracts being rolled over more
-more comprehensive reporting of related party trades

survey distinguished between overnight index swaps and other interest rate swaps
-almost half of daily turnover of all interest rates swaps $4.1t) was due to turnover in OIS ($2t)
-turnover of forward rate agreements averaged $1.9t
-combined turnover in OIS and FRA’s accounting for 61% of turnover in all instruments, typically short term maturities

Question 8

BIS triennial central bank survey pt 4

Answer 8

average daily turnover in US dollar denominated contracts amounted to $3.3t in 2019- half of the total turnover in all currencies at the same global market shares as 2016
-turnover in euro-denominated contracts came to 1.6t or 24% of total turnover (same % as 2016)
-turnover in contracts in renminbi amounted to $33b or 0.5% of total turnover, up from 0.4%
-2019, sales desks in UK recorded highest average daily turnerover in OTC interst rate derivatives at $3.7t (50% of global market), followed by the us ($2.4t, 32% global market share) and HK (436m, 6% of global ms)