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Volumes were the same as last July when
volatility was twice its current levels. As interest rates stay
low globally, crimping arbitrage between even the most liquid
currencies, traders have little incentive to take positions.
Daily currency trading volumes on one platform provider -Thomson
Reuters - fell 11 percent month-on-month, the company said on
Friday.
The value of all transactions through the CLS system, which is
used almost universally by the banking industry to process or
settle trades, dropped to $4.71 trillion in July.
CLS noted that volumes from April to June rose 14 percent.
A survey by the Bank of England in July showed daily currency
trading in London, the world's largest foreign exchange center,
rose 7 percent in the six months to April.
But a combination of ultra-low interest rates across the
developed world and an uncertain regulatory environment has
hammered spot trade volumes over the past year. The BoE said
spot volumes from October to April were down more than a fifth.
Spot trading on Thomson Reuters platforms - which includes
Thomson Reuters Matching and FXall - fell to $99 billion, its
lowest in at least 18 months. But overall, volumes were up 8
percent on the year at $344 billion.
Volumes at rival platform EBS fell by 8 percent from a month ago
to $70.6 billion, leaving them 21 percent below where they were
a year ago, and highlighting the troubles that the interdealer
broker has been facing.
(Editing by Louise Ireland)
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