Questions raised over UK’s forex volume surge
by Joel Clark at Risk magazine
Market participants attribute a range of factors to the 23% rise in foreign exchange turnover in the UK reported by the Bank of England's FX Joint Standing Committee on July 25
Senior market participants and industry association officials have expressed surprise at a 23% rise in foreign exchange turnover in the UK that came to light last week, with speculation it could be attributed to a rise in high-frequency trading activity in London.
On July 25, the Bank of England's Foreign Exchange Joint Standing Committee (JSC) reported in its semi-annual turnover survey that average daily reported turnover in the UK had jumped to $2,191 billion in April; 23% higher than in October 2010 and 30% higher than a year earlier.