e-FX INDUSTRY REPORT


Electronic trading tops 60% of Global FX trading volume


G


reenwich Associates tracks foreign exchange (FX) trading volume among a universe of 1,632 end-user corporate and institutional


customers. Volume figures in this report exclude inter- bank trades, as well as end-user short-dated swaps and rollovers. On this basis, the Greenwich Associates 2012 Global Foreign Exchange Services Study reveals that electronic FX (eFX) trading volumes increased 23% from Q3 2010 to the same period in 2011. Tat growth surpassed the 15% increase in overall foreign exchange trading volumes, thus expanding the share of the market traded on electronic systems to 61% from the 57% of total volume recorded in Q3 2009 to Q3 2010.


Te study results reveal a clear and interesting trend: Electronic trading systems did not attract new users last year. Instead, eFX growth was driven entirely by a pickup in the share of total foreign exchange trading volume routed to electronic systems by existing users. Globally, 62% of FX market participants trade foreign exchange electronically — a share unchanged from 2010. Approximately half of FX market participants in the Asia Pacific region use electronic systems, as do 75% in Europe, 76% in the United States and 80% in the United Kingdom.


Peter D’Amario is Managing Director at Greenwich Associates


Strong growth in electronic trading activity last year pushed electronic foreign exchange volumes above 60% of the overall global FX market for the first time.


28 | april 2012 e-FOREX


While electronic trading systems failed to win new customers last year, they did manage to capture a growing share of business from their existing users. At a global level, existing users of eFX increased the share of their total foreign exchange trading volume executed on electronic systems to 71% in 2011 from 68% in 2010. Te biggest jump occurred in the Americas, where electronic trading systems captured three-quarters of overall foreign exchange trading volumes from their users — up from 67% in 2010. Te one outlier in these terms was the United


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