Results of the Semi-annual Survey of Foreign
Interest Rate Market Activity in Hong Kong
Treasury Markets Association (TMA) announced today (Thursday) the results of
the Semi-annual Survey of Foreign Exchange and Interest Rate Market Activity in
Hong Kong in October 2017, which covers turnover in both FX transactions and
over-the-counter (OTC) interest rate derivatives transactions. The TMA conducted the semi-annual survey to
increase the transparency of the Hong Kong foreign exchange and
over-the-counter interest rate derivatives market.
semi-annual survey is developed based on the Bank for International Settlements
triennial survey on foreign exchange and derivatives market turnover , but
with simplified reporting requirements.
Reporting basis of the semi-annual survey is the same as that of the
triennial survey, i.e. primarily the location of the sales desk servicing the
transactions. The 59 financial
institutions (comprising 55 authorized institutions and 4 licensed
corporations) taking part in the triennial survey in April 2016 participated in
the semi-annual survey in October 2017.
To safeguard data confidentiality, the Hong Kong Monetary Authority
provided support in data handling and survey administration.
October 2017, average daily turnover of foreign exchange transactions increased
by 2.7% to US$418.4 billion, as compared with the results of the survey for
April 2017. The growth was driven by increases
in foreign exchange swaps and currency swaps, which were partly offset by a
modest decline in FX spot trades. Hong
Kong dollar and US dollar has become the most heavily traded currency pair in
the Hong Kong market, followed by US dollar and Renminbi, and then US dollar
and Japanese yen.
Interest rate market
October 2017, average daily turnover of interest rate derivatives increased by
82.1% to US$155.8 billion, as compared with the results of the survey for April
2017. The growth was mainly driven by an
increase in interest rate swaps, which was in large part due to an increase in
hedging trades. Trading was most active
in contracts denominated in US dollar, followed by Australian dollar and then
Hong Kong dollar.
TMA collaborated with the Australian Foreign Exchange Committee, the Canadian
Foreign Exchange Committee, the New York Foreign Exchange Committee, the
Singapore Foreign Exchange Market Committee, the Tokyo Foreign Exchange Market
Committee, and the United Kingdom’s Foreign Exchange Joint Standing Committee,
which conducted similar surveys over the same time period for respective
markets. The results of their surveys
can be found at
 The Hong Kong result
of the April 2016 Bank for International Settlements triennial survey can be