London is the World's Biggest Forex Center

The new report from Bank of International Settlements (BIS) shows that London's financial center accounted for 34.1 per cent of daily global forex turnover, which stands at about $3.2 trillion in April 2007.

The figure also translates to some 80 per cent increase in average daily turnover in the UK foreign exchange market since the beginning of April 2004.

There are several reasons why London's turnover has exceeded that of New York's.

For one, many analysts cite higher levels of participation from retail investors through the internet, private banks and family offices as one reason.

In fact, many think the retail sector will remain one of the key drivers of the future growth of the foreign exchange market in London and push FX market instruments into a major asset class held by households.

Another reason for London's rise is location. It has the advantage of covering both Asian and American time zones.

Also, many bigger European hedge funds that operate in the FX market, do so from their London headquarters.


From London is the World's Biggest Forex Center page to Forex Guide index