Business | Banking
Currency trading explodes
Global market turmoil has triggered an explosion in the number of currency trades going through banks' dealing desks, but it's not all good news.
London: Global market turmoil has triggered an explosion in the number of currency trades going through banks' dealing desks, but it's not all good news.
Years of steady increases in the amount of money pulsing through the $3.2 trillion-a-day foreign exchange market are coming to an end as some of the biggest players are running for cover by soaring market volatility.
Industry specialists, who confidently predicted average daily foreign exchange turnover would approach a record $4 trillion this year, are now adopting more conservative forecasts.
"There's been an increase in trading velocity but we've not seen a commensurate rise in total value, in fact the opposite," said Jonathan Butterfield, vice president of marketing and communications at FX settlement bank CLS.
London's position as the global hub of currency trading was cemented, with figures in April showing a one-third rise in daily turnover from the previous six months.
Industry specialists say banks are continuing to make money out of the currency business, which has been one of the few bright spots in otherwise ailing balance sheets.
Share this article
More from Banking
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
What to expect at the Dubai Airshow
We preview what types of aircraft to expect at the Dubai Airshow
-
Air Arabia revamps its website
Upgraded site offers new features, accessible in range of languages
-
Dubai looks ahead to 2010 with new projects
Global visitor numbers up 4% on year and occupancy rates remain strong


