FX derivatives market provides first insights to shed some light into these
Indeed, FX derivatives have assumed an important role in global
derivatives markets with a notional outstanding volume of USD 74 tr or 14% of
all over the counter (OTC) derivatives in mid-2016, up from 9% in mid-2010.
In a growing market segment, transactions are increasingly taking place in Asia:
the region’s share of global FX derivative trading expanded from 20% to 26%
over the same period, according to the latest triennial survey of the Bank for
International Settlements (BIS).
Trading in the EU made 48% of the market
where the lions share come from the UK with 37%. The Japanese yen remained
the most widely traded Asian currency in 2016 with a daily turnover of USD 701
bn, followed by the Chinese renminbi with USD 135 bn, up from just USD 26 bn
six years ago.
The general upswing is consistent with Asian markets’ secular
increasing profile in the global economy and international capital flows towards