BIS survey of FX and OTC derivatives markets 2022
The average daily foreign exchange (FX) transaction volume for financial institutions operating in Finland increased slightly in April 2022 from April 2019, whilst remaining lower than in 2007–2016. This information comes from the triennial survey of foreign exchange and OTC derivatives markets conducted by the Bank for International Settlements (BIS) and implemented in Finland by the Bank of Finland. The daily FX transaction volume in April 2022 totalled USD 7.7 billion, 17% more than in April 2019. Global FX trade has seen a similar trend. The global FX transaction volume grew by 14% in the same period, to stand at USD 7,500 billion per day in April 2022.
The growth of the daily FX turnover in Finland is explained by growth in spot, forward and option transactions. FX swaps continued to account for most of the FX trade, even though their volume has contracted by 16% from 2019. In April 2022, FX swaps covered 57% of the daily FX turnover. Spot transactions accounted for 22%, outright forwards for 14% and OTC options for 6% of the FX turnover. Currency swaps accounted for less than 1%. FX swaps remained the largest FX trading instrument also globally and their share (51%) increased by 2 percentage points from April 2019.
As in previous years, global FX trade was highly concentrated on the largest financial centres. Of the global FX trade in April 2022, the United Kingdom, United States, Singapore and Hong Kong accounted for 78%. The United Kingdom remained the largest market venue, with a share of 38%.
The euro remained the most actively traded currency in the Finnish FX market. In April 2022, it was a counterpart currency in 85% of all transaction volume. However, the share of the euro has declined from April 2019, when it stood at 92%. The share of the US dollar in Finnish FX transactions has continued to decline. In April 2022, it was a counterpart in 45% of transaction volume, as opposed to 67% in April 2016. At the same time, the Swedish krona rose from 18% to 24%. Globally, the US dollar remained by far the most actively traded currency in April 2022. It was a counterpart currency in 88% of all transaction volume. At the same time, the proportions of the second- and third-most traded currencies globally, the euro and the yen, declined somewhat.
In Finland, the most (66%) of FX trade was carried out among the financial institutions responding to the survey. The share of non-financial institutions as counterparties has increased, to stand at 22% in April 2022. At the same time, trading with a domestic counterparty has declined to 28% of volume from 37% in April 2019. Also globally, most of the FX trade was conducted among the institutions responding to the survey (46%), but the proportion of non-financial institutions was considerably lower (6%) than in Finland. On a global scale, the proportion of transactions among domestic counterparties was 38%.
In the triennial BIS survey, data is also collected on the trading volume of OTC interest rate derivatives in USD terms in April. In April 2022, the average daily turnover in Finland was USD 8.0 billion, which is 120% more than in April 2019. Globally, the average daily turnover of OTC interest rate derivatives trended down. Trading volume decreased by 19% from April 2019, to stand at USD 5,200 in April 2022.
The most actively traded instrument in Finland was an outright interest rate swap, accounting for 62% of transaction volume in OTC interest rate derivatives. Meanwhile, interest rate swaps accounted for 35% and OTC options and other instruments for 3% of the OTC interest rate derivatives trading by financial institutions in Finland. Globally, trading was most active in interest rate swaps, followed by interest rate forwards.
For further information, please contact:
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi,
Ville Tolkki, tel. +358 9 183 2420, email: ville.tolkki(at)bof.fi.
The press release by BIS and the results of the global survey can be accessed on the BIS website at https://www.bis.org/statistics/rpfx22.htm.
 The BIS survey of foreign exchange and OCT derivatives markets has been conducted in 2001, 2004, 2007, 2010, 2013, 2016, 2019 and 2022.