The Bank for International Settlements published yesterday (16 September 2019) the results of the 2019 Triennial Survey of Foreign Exchange and Derivatives Market Turnover1.
Hong Kong advanced one place and ranked third globally in terms of over-the-counter (OTC) interest rate derivatives turnover. It continued to be the fourth largest global foreign exchange market.
According to the survey, the average daily turnover of foreign exchange transactions in Hong Kong increased by 44.8% from US$436.6 billion in April 2016 to US$632.1 billion in April 2019. The growth was attributed to increases in foreign exchange swaps (+51.2% to US$417.2 billion) and spot transactions (+22.0% to US$111.7 billion). HK dollar against US dollar (+164.6% to US$142.3 billion) was the most heavily traded currency pair.
As regards OTC interest rate derivatives, the average daily turnover in Hong Kong increased by nearly 3 times from US$109.8 billion in April 2016 to US$435.9 billion in April 2019. Over 90% of the increase was driven by interest rate swap transactions.
Hong Kong maintained its lead as the largest offshore Renminbi foreign exchange and interest rate derivatives market. Hong Kong’s average daily turnover of Renminbi foreign exchange transactions increased by 39.6% from US$77.1 billion in April 2016 to US$107.6 billion in April 2019. The average daily turnover of Renminbi OTC interest rate derivatives transactions also doubled from US$6.2 billion in April 2016 to US$12.7 billion in April 2019.
Detailed survey results of Hong Kong together with country comparisons will be provided in the December issue of the HKMA Quarterly Bulletin.
Hong Kong Monetary Authority
17 September 2019
1 The turnover part of the survey comprised collection of data on gross turnover in notional amounts of foreign exchange spot, foreign exchange and over-the-counter (OTC) interest rate derivatives transactions in April 2019. Data were reported on a “locational” basis, i.e. based on the location of the sales desk of a deal. Turnover figures have been adjusted to exclude double counting of inter-dealer transactions reported by local dealers.