Foreign exchange market turnover by instrument Net-net basis, daily averages in April Graph 2 2001-16 2016 3000 010407101318 I Adjusted for local and cross-border inter-dealer double-counting Source: BIS Triennial Central Bank Survey. For additional data by instrument, see Table 1 on page 9 The us dollar continues to be on one side of 91% of FX swap transactions, a share virtually unchanged compared with previous surveys. The euro was on one side of 34% of FX swap transactions, also a virtually unchanged share since 2013. The share of the yen in total FX swap turnover rose to 19%in pril 2016, compared with 15% in 2013.3 Trading activity changed unevenly in other parts of the FX OTC derivatives market. Trading volume of outright forwards rose to $700 billion in 2016, a 3% increase from $679 billion in 2013. Trading volume of currency swaps grew much faster than in any other part of the FX market, although this instrument still remains the least traded, owing in part to the long maturity of the contracts. Turnover in currency swaps rose to $96 billion in 2016, a 79% increase from $54 billion in 2013 In contrast, trading volume of FX options declined to $254 billion in 2016, 24% lower than in 2013. The largest decline took place in yen cross rates, which declined to $74 billion in 2016 (ie by 52% from2013).4 The 2016 survey shows a tendency towards slightly longer maturities of FX swaps and outright forwards. For instance, 30% of FX swaps initiated in April 2016 had a contractual maturity of between seven days and one year, compared with 26%in 2013(Table 4). Similarly, 59% of outright forwards initiated in April 2016 had a contractual maturity of between seven days and one year, compared with 56% in April 2013 3 For an analysis of investor positioning in yen FX swaps and related FX derivatives, see C Borio, R McCauley, P McGuire and V Sushko,"Covered interest parity lost: understanding the cross-currency basis", BIS Quarterly Review, September 2016 These changes have to be interpreted in the context of the surge in yen options trading in April 2013, when players such as hedge funds used the options market to express their directional views on the yen given the expansionary shift in Japanese monetary policy in April 2013: for a more detailed discussion, see D Rime and A Schrimpf(2013), op cit. Is Triennial Central Bank Survey 20166 BIS Triennial Central Bank Survey 2016 Foreign exchange market turnover by instrument Net-net basis,1 daily averages in April Graph 2 2001–16 USD bn 2013 2016 1 Adjusted for local and cross-border inter-dealer double-counting. Source: BIS Triennial Central Bank Survey. For additional data by instrument, see Table 1 on page 9. The US dollar continues to be on one side of 91% of FX swap transactions, a share virtually unchanged compared with previous surveys. The euro was on one side of 34% of FX swap transactions, also a virtually unchanged share since 2013. The share of the yen in total FX swap turnover rose to 19% in April 2016, compared with 15% in 2013.3 Trading activity changed unevenly in other parts of the FX OTC derivatives market. Trading volume of outright forwards rose to $700 billion in 2016, a 3% increase from $679 billion in 2013. Trading volume of currency swaps grew much faster than in any other part of the FX market, although this instrument still remains the least traded, owing in part to the long maturity of the contracts. Turnover in currency swaps rose to $96 billion in 2016, a 79% increase from $54 billion in 2013. In contrast, trading volume of FX options declined to $254 billion in 2016, 24% lower than in 2013. The largest decline took place in yen cross rates, which declined to $74 billion in 2016 (ie by 52% from 2013).4 The 2016 survey shows a tendency towards slightly longer maturities of FX swaps and outright forwards. For instance, 30% of FX swaps initiated in April 2016 had a contractual maturity of between seven days and one year, compared with 26% in 2013 (Table 4). Similarly, 59% of outright forwards initiated in April 2016 had a contractual maturity of between seven days and one year, compared with 56% in April 2013. 3 For an analysis of investor positioning in yen FX swaps and related FX derivatives, see C Borio, R McCauley, P McGuire and V Sushko, “Covered interest parity lost: understanding the cross-currency basis”, BIS Quarterly Review, September 2016 (forthcoming). 4 These changes have to be interpreted in the context of the surge in yen options trading in April 2013, when players such as hedge funds used the options market to express their directional views on the yen given the expansionary shift in Japanese monetary policy in April 2013; for a more detailed discussion, see D Rime and A Schrimpf (2013), op cit