FX markets turn up the volume

The Bank for International Settlements (BIS) recently released preliminary data from its triennial survey on global currency markets. Clifford Cheah, Deutsche Bank’s head of global finance and foreign exchange in Asia, helps us break down what’s behind the numbers, and tells us why he thinks growth in FX markets is only just getting started, especially in Asia.

The BIS data show that trading volume in global FX markets grew by 20% during the past three years. What do you think is driving this?
I think it’s quite interesting to take a look at some of the geographic drivers behind the turnover growth, recognising that there has been a consistent rise in trading volumes in Asian markets during the past few periods of the survey. In line with this, during the past three years there was volume growth in every Asian market, with significant jumps in activity in China, Hong Kong, Japan and Malaysia. In addition, there has been growth in turnover for new currencies and new currency pairs.