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Kingdom. However, the dip in share of total volume executed electronically by U.K. eFX customers might be attributable to the fact that, unlike in other markets, electronic trading platforms in the United Kingdom did manage to win new customers last year, and these customers likely drove down overall averages as they got up and running.
Strong growth in North America, Asia and Europe
In a year in which overall global foreign exchange trading volume notched a strong recovery from the contraction experienced in 2010, eFX volumes surged in most major market regions last year. From 2010 to 2011 electronic trading volumes increased 47% in the Americas, 20% in Europe and 22% in Asia Pacifi c. As a result of those increases, the share of total foreign exchange trading volume executed electronically in the Americas increased to 60% in 2011 from 51% in 2010 and the share of overall volume executed electronically expanded to 62% from 58% in Europe. T e European expansion was driven by a 22% increase in e-trading volume on the continent; eFX volumes in the United Kingdom were essentially fl at.
In Japan, the share of overall foreign exchange volume executed via electronic trades held steady at roughly 68% amid strong year-to-year growth in both total FX volume (up 23%) and eFX volume (up 35%). In Asia
ex-Japan/Australia/New Zealand, the share of overall foreign exchange trading volumes routed through electronic systems declined to 54% in 2011 from 59% in 2010 as growth in e-trading volumes (+4%) lagged growth in total FX (+6%).
Biggest market participants lead e-trading push
In what can only be seen as a positive sign for the global e-trading industry, eFX trading volume surged last year among the largest and most actively trading fi nancials and corporates that generate the bulk of global trading business. In 2011 about 86% of market participants generating in excess of $50 billion in annual foreign exchange trading volume traded electronically, and those users increased the percentage of business executed through electronic systems to 71% in 2011 from 69% in 2010.
Among market participants generating annual FX trading volumes between $10 billion and $50 billion, the share trading electronically increased to 75% in 2011 from 73% in 2010 and the typical eFX user in this group increased the share of overall foreign exchange volume executed electronically to 66% from 62%. Due to such consistent uptake, electronic trading systems are now capturing nearly two- thirds of trading volume generated by the biggest players in global FX markets.
Platforms win trading business Electronic Trading Penetration and Market Share
T e trend of pushing increasing amounts of foreign exchange trading volume onto electronic platforms was evident last year among both fi nancial participants that make up the bulk of the global FX market and among companies. In 2010 the typical fi nancial institution active in eFX executed 70% of total foreign exchange volume on electronic systems. In 2011 that share increased to 73%. Customer banks using electronic trading systems executed 77% of total
april 2012 e-FOREX | 29
Source: 2012 Global Foreign Exchange Services Study
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