UK share of global FX went up to 39% in 2013

LMAX Exchange

Global FX volume traded on OTC markets for the 1995-to-2013 period saw tremendous growth overall, but the share from the top 10 nations remained intact at roughly 88%, following a dip to 84% during the 2001-to-2004 period. Certain factors, such as the emergence of the euro in 1999, the rise of high frequency trading in the mid-2000s, and the ensuing race toward creating low-latency environments, did create change within the share of top 10 nations. During the 18-year period from 1995 to 2013, the U.K. raised its market share in FX markets by 5.3% points, while Japan’s share fell by 4.1% points and the combined share of Germany and France dropped by 3.6% points based on FX client flows.

Volume by Region

UK-share-of-global-FX

Source: Aite Group ‘Global FX Market Update 2013: Increased Market Transparency, More Competition’, June 2013

David Mercer, LMAX Exchange CEO, shares insights.

Source: Aite Group ‘Global FX Market Update 2013: Increased Market Transparency, More Competition’, June 2013

Video Transcript

UK share of global FX went up to 39% in 2013

LMAX Exchange, CEO, David Mercer comments on the Aite Group report statistic of the UK share of the global Spot FX market increasing to 39% in 2013, stating that the majority of matching engines are located in London and New York and as such the figure could be in relation to the point of execution rather than where the volume is derived from. FX is a global asset class, and is increasingly traded from emerging market territories, especially from the Asia Pacific regions, and to gather an accurate reading of the global Spot FX market share this should be positioned more towards the location of the end user/client.

Business and Technology   Aite Group   LMAX Exchange  

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