The BIS survey shows that traditional volumes have surged from 1.9 trillion USD per day in 2004 to a staggering 3.2 trillion USD per day in April 2007.
âThe 70 percentage jump that we see in the BIS survey may be the largest ever jump since the surveys began," says Claus Nielsen, Saxo Bankâs Executive Director for Trading and Market Making. "But we expect the FX marketplace to continue to grow, and Retail FX turnover is also very likely to continue to soar at an even faster rate."
Claus Nielsen points out that in terms of more traded currencies, there has been an increase in JPY and GBP crosses, as well as in the Emerging Markets currencies and spot Gold and Silver. "For many reason we see an even stronger growth over the next 3 years as FX is becoming a true Asset Classâ, says Claus Nielsen who is in San Francisco to participate in an exclusive Saxo Bank event for asset managers, CTAs, CPOs, financial institutions, brokerages, banks etc. He finds it noteworthy that a year ago at least in Europe not many in the street knew what a FX carry trade was about.
âNow, everyone in the street knows about carry trading. The unwinding of the Carry Trade was even considered one of the reasons why stock markets fell in Augustâ, says Claus Nielsen.
He believes that FX Carry Trades as well as investing in Emerging Markets currencies to gain a high yield will add to the knowledge about FX trading and, eventually, turn it into an Asset Class.
âAnother very important accelerator for FX as an Asset Class is that big retail banks like ABN, Deutsche etc. are starting to offer FX to their retail clientsâ, says Claus Nielsen.
Saxo Bank is headquartered in Copenhagen, Denmark, with operating offices in London, Geneva, ZÃ¼rich, Singapore and Marbella in Spain. It also runs a representative office in Beijing and an IT development center in St. Petersburg. One of Saxo Bank's significant areas of business is White Labelling. Saxo Bank has more than 70 White Label Partners and thousands of clients in over 170 countries.