The Canadian Foreign Exchange Committee (CFEC) released today the results of its April 2023 semi-annual survey of foreign exchange volumes in Canada. The purpose of the survey is to provide information on the size and structure of the foreign exchange and foreign exchange derivatives markets in Canada. Volumes are broken down by product, currency, counterparty, maturity and execution method. The nine banks with the largest foreign exchange sales activity in Canada participate1.

The summary highlights of the April 2023 survey include the following:

  • The monthly turnover in April of traditional foreign exchange products (defined as spot transactions, outright forwards and foreign exchange swaps) totaled about US$2.83 trillion. On an average daily basis, total turnover decreased by 0.3 per cent to US$149.1 billion from October 2022.
  • Spot transactions decreased by 4.4 per cent to US$ 18.8 billion on an average daily basis from October 2022. Outright forwards increased by 20.6 per cent to US$19.2 billion and foreign exchange swaps decreased 2.5 per cent to US$ 111.1 billion over the same period.
  • The monthly turnover of foreign exchange derivatives (currency swaps and options) totaled US$ 252 billion in April. On an average daily basis, derivatives turnover decreased by 18.5 per cent to US$ 13.3 billion from October 2022.
  • Currency swaps turnover decreased 17.6 per cent to US$10.2 billion while currency options turnover decreased by 21.3 per cent to US$ 3.1 billion on an average daily basis from October 2022.
  • Compared with the survey from one year ago, the average daily turnover of traditional foreign exchange products increased by 4.6 per cent, and foreign exchange derivatives increased by 30.5 per cent.

The detailed results of the survey are presented in the summary tables attached. 

Notes

CFEC is an industry group composed of senior representatives from financial institutions actively involved in the foreign exchange market in Canada and the U.S. dollar/Canadian dollar market globally. Formed in 1989, its objective is to provide a forum for the regular discussion of issues and developments pertinent to the foreign exchange market, including the review of market practices and procedures. The Bank of Canada chairs CFEC and provides secretariat services to the Committee.

The Bank of Canada also co-ordinates the CFEC survey on behalf of the market participants. The nine banks that participate in the survey are:

  • BAML Canada
  • Bank of Nova Scotia
  • BMO Capital Markets
  • CIBC World Markets
  • HSBC Bank Canada
  • National Bank of Canada
  • RBC Capital Markets
  • State Street Canada
  • TD Securities

Globally, the (London) Foreign Exchange Joint Standing Committee, the (New York) Foreign Exchange Committee, the Singapore Foreign Exchange Market Committee, the Tokyo Foreign Exchange Market Committee, the Australian Foreign Exchange Committee and Hong Kong’s Treasury Markets Association conduct similar surveys. Their results are also released today (see links below).  

https://www.bankofengland.co.uk/markets/london-foreign-exchange-joint-standing-committee
http://www.newyorkfed.org/fxc/volumesurvey/
https://www.sfemc.org/statistics.html
http://www.fxcomtky.com/index_e.html
http://www.tma.org.hk/en_newsevents.aspx
https://www.afxc.rba.gov.au/statistics/

Content Type(s): Press, Market notices
Source(s): Canadian Foreign Exchange Committee
  1. 1. The data submitted by one bank have not been verified. They are estimates only and may be subject to change.[←]