Turnover by counterparty FX trading continued to be dominated by financial institutions other than reporting dealers, which accounted for 51%of turnover in April 2016(Graph 3 and Table 4). However, the share of trading between reporting dealers increased for the first time since 1995. Inter-dealer trading, which averaged $2.1 trillion in April 2016, increased from 39% of FX turnover in April 2013 to 42% in April 2016. The rise in inter-dealer trading was primarily driven by the increased trading in FX swaps, an 11% rise since 2013 to $1. 2 trillion in April 2016. Turnover in spot activity among reporting dealers declined in absolute terms (Table 4) 2016 to Trading between reporting dealers and other financial institutions fell slightly between 2013 and $2.6 trillion. Non-reporting banks- smaller and regional banks that serve as clients of the large FX dealing banks but do not engage in market-making- accounted for roughly 22% of global FX turnover in April 2016(Graph 3), down from a 24% share in April 2013. At the same time, institutional investors, such as insurance companies and pension funds, further increased their share of fX trading relative to hedge funds and proprietary trading firms: institutional investors were on one side of 16% of daily turnover in April 2016, up from 11%in 2013, whereas the corresponding share of FX trading by hedge funds and proprietary trading firms decreased from 11%to 8% The rise in the share of trading by institutional investors is mostly due to an increase in their use of FX swaps. Average daily FX swap turnover with institutional investors as a counterparty rose to $278 billion by April 2016(Table 5), a 79% increase compared with the 2013 survey The fall in the share of trading by non-reporting banks is primarily due to a decline in their activity in the spot market, followed by a decline in their use of FX swaps. Average daily spot turnover with non eporting banks as a counterparty stood at $354 billion in April 2016, a 30% decline compared with the 2013 survey, and average daily FX swap turnover stood at $564 billion(a 7% decline) Foreign exchange market turnover by counterparty Net-net basis, daily averages in April Graph 3 2001-16 2016 Breakdown of other financial 4.000 51% 42 Reporting dealers banks Other financlal Inaututons Hedge funds and PTFa I Adjusted for local and cross-border inter-dealer double-counting. For definitions of counterparties, see page 18. Proprietary trading firms Source: BIS Triennial Central Bank Survey. For additional data by counterparty, see Tables 4 and 5 on pages 12 and 13 BIS Triennial Central Bank Survey 2016BIS Triennial Central Bank Survey 2016 7 Turnover by counterparty FX trading continued to be dominated by financial institutions other than reporting dealers, which accounted for 51% of turnover in April 2016 (Graph 3 and Table 4). However, the share of trading between reporting dealers increased for the first time since 1995. Inter-dealer trading, which averaged $2.1 trillion in April 2016, increased from 39% of FX turnover in April 2013 to 42% in April 2016. The rise in inter-dealer trading was primarily driven by the increased trading in FX swaps, an 11% rise since 2013 to $1.2 trillion in April 2016. Turnover in spot activity among reporting dealers declined in absolute terms (Table 4). Trading between reporting dealers and other financial institutions fell slightly between 2013 and 2016, to $2.6 trillion. Non-reporting banks – smaller and regional banks that serve as clients of the large FX dealing banks but do not engage in market-making – accounted for roughly 22% of global FX turnover in April 2016 (Graph 3), down from a 24% share in April 2013. At the same time, institutional investors, such as insurance companies and pension funds, further increased their share of FX trading relative to hedge funds and proprietary trading firms: institutional investors were on one side of 16% of daily turnover in April 2016, up from 11% in 2013, whereas the corresponding share of FX trading by hedge funds and proprietary trading firms decreased from 11% to 8%. The rise in the share of trading by institutional investors is mostly due to an increase in their use of FX swaps. Average daily FX swap turnover with institutional investors as a counterparty rose to $278 billion by April 2016 (Table 5), a 79% increase compared with the 2013 survey. The fall in the share of trading by non-reporting banks is primarily due to a decline in their activity in the spot market, followed by a decline in their use of FX swaps. Average daily spot turnover with non￾reporting banks as a counterparty stood at $354 billion in April 2016, a 30% decline compared with the 2013 survey; and average daily FX swap turnover stood at $564 billion (a 7% decline). Foreign exchange market turnover by counterparty Net-net basis,1 daily averages in April Graph 3 2001–16 USD bn 2016 Breakdown of other financial institutions2 1 Adjusted for local and cross-border inter-dealer double-counting. 2 For definitions of counterparties, see page 18. 3 Proprietary trading firms. Source: BIS Triennial Central Bank Survey. For additional data by counterparty, see Tables 4 and 5 on pages 12 and 13