Global foreign exchange volumes increased 17% from 2005 to 2006, according to new research from Greenwich Associates. At the same time, the interest-rate derivatives business recovered from a year of stagnant trading volumes with a 10% increase in 2006.
Foreign exchange trading volume among the more than 1,600 large companies and financial institutions participating in Greenwich Associates' annual FX research program grew to $70.6 trillion in 2006. Interest-rate derivatives trading volume reported by the 694 companies and institutions interviewed by Greenwich Associates in that market increased to $1.4 trillion in 2006.
"In the foreign exchange market, two trends in particular appear to have boosted trading activity to a new and potentially sustainable level: the increased international investment activity associated with globalisation and the increasing use of electronic trading systems," says Greenwich Associates consultant Peter D'Amario.