In April 2022, 27 financial institutions active in the UK foreign exchange market participated in the semi-annual turnover survey for the Foreign Exchange Joint Standing Committee (FXJSC). The survey results are summarised below. More detailed tables, including a market share report, for the April 2022 reporting period are available separately.
The main findings of the survey are:
- Average daily reported UK foreign exchange turnover reached a record survey high of $3,276 billion in April 2022. This represented a 19% increase on the $2,757 billion turnover recorded in October 2021, and an 11% rise relative to the $2,948 billion turnover recorded in April 2021.
- Relative to the previous survey, turnover rose across all instruments except for currency swaps. FX swaps volume rose 18% relative to October 2021 to $1,689 billion. Outright forwards and NDFs rose to $371 billion and $136 billion representing a 14% and 7% increase relative to October 2021 respectively. All three instruments reached record survey highs. Spot turnover rose 21% to $884 billion, but was below its record survey high of $1,112 billion recorded in October 2014. Turnover in currency swaps decreased 7% to $26 billion.
- EUR/USD remained the most commonly traded currency pair in London, with average daily turnover of $952 billion. This represented a 24% increase relative to the previous survey and a 5% increase when compared to April 2021. GBP/USD maintained its position as the second most commonly traded currency pair. Daily average turnover was $432 billion, broadly flat when compared to last survey but 14% higher than April 2021. Daily average turnover in both EUR/USD and GBP/USD reached record survey highs.
- Looking at longer-term trends, since April 2016 overall turnover has risen 47% from $2,225 billion to $3,276 billion in April 2022. The increase in turnover has been relatively steady over the period, with the exception of April 2020. Within that period, FX Swaps have seen the largest absolute increase from $1,050 billion to $1,689 billion (+61%). Whilst NDFs have seen the largest relative increase, rising 125% from $60 billion to $136 billion. Whereas, turnover in spot has been broadly flat over the period and currency swaps have fallen slightly. In currency pairs, EUR/USD turnover had the largest absolute increase since 2016, growing from $621 billion to $952 billion (+53%). Turnover in USD/CNY grew the most in relative terms, rising 187% from $40 billion to $115 billion.
Tables 1 to 4 below provide various summaries of the average daily data for April 2022, with comparisons to October 2021.