S'pore Is World's 5th Largest Forex Hub, Asia's No. 2

Source : The Business Times, September 26, 2007

Average daily turnover up 84% at US$231b this year from 2004: survey

SINGAPORE is now the fifth largest foreign exchange (FX) centre in the world and the second largest in Asia, according to a survey by the Bank for International Settlements.

This came as the average daily FX turnover volume here jumped 84 per cent from the previous survey in 2004 to reach US$231 billion in 2007.

The BIS Triennial Central Bank Survey - FX and Derivatives Market Activity in 2007 - which is for the reporting month of April this year, shows that Singapore's FX market continues to be international in character, with the major currencies such as the US dollar, Japanese yen and euro dominating turnover volumes.

The survey also ranks Singapore as the eighth largest centre globally in terms of over-the-counter (OTC) derivatives trading, up from 12th position in 2004.

The average daily OTC derivatives turnover in April shot up to US$68.6 billion, from US$17 billion in 2004.

FX derivatives accounted for an average daily turnover of US$11.3 billion while single currency derivatives stood at US$57.3 billion.

The BIS study uses a submission basis based on where the FX or derivatives transaction originated. Fifty banks in Singapore were involved in the survey.

In addition, the Singapore Foreign Exchange Market Committee (SFEMC) carries out a semi-annual FX survey of the top trading banks in Singapore, in coordination with committees in New York, London, Tokyo and Canada.

'The last survey done for the month of April 2007 had put average daily FX turnover at around US$223 billion for the top 30 FX banks in Singapore alone,' the Monetary Authority of Singapore (MAS) said.

MAS deputy managing director Ong Chong Tee said: 'The BIS as well as the SFEMC surveys affirm Singapore's continued strong growth as a key foreign exchange centre in the world. A number of financial institutions have chosen Singapore as their Asian FX trading hub, and several have been expanding their operations here.'