NEW YORK, Sept 25 Turnover in traditional foreign exchange instruments rose to $3.2 trillion in April, 2007, up 71 percent from April 2004, according to preliminary results of a central bank survey conducted by the Bank of International Settlements.
Fifty-four central banks and monetary authorities participated in the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April, the BIS said in a news release. It was the seventh global survey since April 1989 of foreign exchange market activity and the fifth survey since April 1995 additionally covering over-the-counter derivatives market activity.
The survey found growth was broad-based across instruments, though growth in foreign exchange swap turnover was particularly strong, rising 82 percent.
Transactions between dealers and financial institutions such as hedge funds, mutual funds, pension funds and insurance companies increased by 7 percentage points to 40 percent.
Over-the-counter derivative markets activity continued to expand at a rapid pace, the report said.
Average daily turnover of interest rate and non-traditional foreign exchange contracts increased by 71 percent to $2.1 trillion in April 2007. Turnover of foreign exchange options and cross-currency swaps more than doubled to $0.3 trillion per day, outpacing growth in "traditional" instruments such as spot trades, forwards or plain FX swaps.