Published September 01, 2016
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Date: September 01, 2016
Categories: Data & Analytics, Exchanges, FX market, Markets Exchanges, Singapore
Keywords: MAS, , Monetary Authority Of Singapore, Bank For International Settlements
Singapore - The Monetary Authority of Singapore (MAS) announced today that Singapore remains the largest foreign exchange (FX) centre in the Asia-Pacific region and third largest globally after London and New York, according to the 2016 Triennial Central Bank Survey1 of the global FX and over-the-counter (OTC) derivatives markets by the Bank for International Settlements (BIS).
The average daily trading volume of Singapore’s FX market was US$517 billion in April 2016, up 35% from US$383 billion in April 2013. Singapore’s share of global FX volumes has grown to 7.9% in 2016, from 5.7% three years ago.
The expansion in Singapore’s FX market was chiefly driven by growth in G10 and Asian currencies such as CNY2 (78%3), JPY (67%3), GBP (60%3) and KRW (55%3). Foreign exchange swaps made up the largest traded foreign exchange product class in Singapore and accounted for 48%4 of all trades, followed by spot (24%4) and FX forwards (20%4).
Interest rate derivatives market also registered strong growth, with average daily volumes surging 57% to US$58 billion in April 2016, compared to US$37 billion in April 2013, the second highest in Asia. The most actively traded instruments were AUD (25%5), SGD (18%5) and JPY (13%5) interest rate derivatives.
Ms Jacqueline Loh, Deputy Managing Director of MAS, said, "Singapore is building on its role as the preeminent marketplace in Asia for global and regional banks, non-bank financial institutions and corporate treasurers to manage their FX risks. MAS is working with the industry to further enhance price discovery, liquidity and transparency in our FX market by strengthening electronic trading capabilities and anchoring market infrastructure.”
1 MAS, together with central banks and other authorities in 51 other jurisdictions, conducted a survey of turnover in the OTC FX and interest rate derivatives markets in April 2016. 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.
2 Includes CNH.
3 Percentage growth from 2013 to 2016. See Table 5 of the Annex.
4 Composition of FX market. See Table 4 of the Annex.
5 Composition by currency. See Table 6 of the Annex.
Re-disseminated by The Asian Banker