CFEC Releases April 2022 Currency Volume Survey Results

The Canadian Foreign Exchange Committee (CFEC) today released the results of its April 2022 semi-annual survey of foreign exchange volumes in Canada. The purpose of the survey is to provide information on the size and structure of foreign exchange and foreign exchange derivatives markets in Canada. Volumes are broken down by product, currency, counterparty, maturity and method of execution. The nine banks with the most currency sales activity in Canada participate.

Highlights of the April 2022 survey summary include the following:

  • Monthly revenue in April from traditional foreign exchange products (defined as spot transactions, forward contracts and foreign exchange swaps) totaled approximately US$2.84 trillion. On an average daily basis, total revenue decreased 11.1% to $142.5 billion from October 2021.
  • Spot transactions increased 1.5% to US$20.6 billion on an average daily basis from October 2021. Futures contracts fell 1.2% to US$16.3 billion of US dollars and foreign exchange swaps decreased by 14.4% to reach 105.7 billion US dollars over the same period.
  • The monthly turnover of foreign exchange derivatives (currency swaps and options) amounted to $204 billion in April. On an average daily basis, derivatives revenue increased 21.5% to $10.2 billion from October 2021.
  • Currency swaps revenue increased 2.3% to $4.4 billion, while currency options revenue increased 41.5% to $5.8 billion dollars on an average daily basis from October 2021.
  • Compared to the survey a year ago, the average daily turnover of traditional foreign exchange products decreased by 9.2% and foreign exchange derivatives increased by 33.8%.

The detailed results of the survey are presented in the attached summary tables.

Remarks

The CFEC is an industry group comprised of senior representatives of financial institutions active in the foreign exchange market in Canada and in the US/Canadian dollar market globally. Formed in 1989, its purpose is to provide a forum for the regular discussion of issues and developments relevant to the foreign exchange market, including the review of market practices and procedures. The Bank of Canada chairs the TECC and provides secretariat services to the Committee.

The Bank of Canada is also coordinating the CFEC survey on behalf of market participants. The nine banks participating in the survey are:

  • BAML Canada
  • Bank of Nova Scotia
  • BMO Capital Markets
  • CIBC World Markets
  • HSBC Bank Canada
  • National bank of Canada
  • RBC Capital Markets
  • State Street Canada
  • TD Securities

Globally, the Foreign Exchange Joint Standing Committee (of London), the Foreign Exchange Committee (of New York), the Singapore Foreign Exchange Market Committee, the Tokyo Foreign Exchange Market Committee, the Australian Foreign Exchange Committee and the Hong Kong Treasury Markets Association are conducting similar investigations. Their findings are also published today (see links below).

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