Singapore Cements Position as Third Largest Global FX Centre
Singapore, 28 October 2022… The Monetary Authority of Singapore (MAS) announced today that Singapore’s foreign exchange (FX) average daily trading volumes (ADTV) rose to US$929 billion in April 2022, increasing by 45% from April 2019. Singapore retained its position as the third largest FX centre in the world, after the UK and the US, with its share of global FX volumes rising to 9.5% in April 2022, from 7.7% in April 2019. These figures were released yesterday in the 2022 Triennial Central Bank Survey of the global FX and over-the-counter (OTC) derivatives market conducted by the Bank for International Settlements.
2. Singapore’s FX ADTV growth was broad-based across the major currencies, led by the US dollar, Japanese yen and Euro which registered trading volume increases of between 39% and 50% from 2019 to 2022. This was followed by the Chinese yuan and the Singapore dollar. Please refer to Table 1 in the Annex for the average daily trading volumes by currency.
3. In terms of FX instruments, spot, forwards and FX swaps, which together account for more than 90% of Singapore’s turnover, rose in volume by between 46% and 50%. Options turnover grew by 25%, while currency swaps volumes declined by 14%. For average daily trading volumes by instrument, please refer to Table 2.
4. Singapore’s OTC interest rate derivatives volumes averaged US$156 billion a day in April 2022, an increase of 34% from April 2019. US dollar, Korean won, and Australian dollar interest rate derivatives were the most actively traded in the Singapore market. Please refer to Table 3 for average daily interest rate derivative trading volume by currency.
5. Mr Lim Cheng Khai, Executive Director of MAS’ Financial Markets Development Department, said, “The strong growth in FX volumes in the last three years is a direct outcome of concerted efforts by key FX industry players to set up electronic FX trading and matching engines in Singapore. This provides market participants with enhanced liquidity and robust FX execution capabilities. MAS will continue to work closely with the industry to deepen the e-FX ecosystem, to better serve growing interest by global market participants to execute FX trades in the Asian time zone.”
MAS, together with central banks and other authorities in 51 other jurisdictions, conducted a survey of turnover in the global FX and OTC derivatives markets in April 2022. Coordinated by the BIS, this global effort is undertaken every three years with the aim of increasing the transparency of OTC markets and helping market participants, infrastructure providers, central banks and other authorities to monitor developments in global financial markets. It is a comprehensive source of information on the size of global FX and OTC derivatives markets, covering FX spot, FX forwards, FX swaps, currency swaps, FX options and interest rate derivatives. MAS obtained the data from 92 financial institutions in Singapore for the survey.
The BIS has published its global results yesterday (see BIS website at ), with a detailed analysis to follow in December 2022. Other jurisdictions are also publishing their own survey results; links to their websites can be found on BIS’ website.
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