BIS triennial central bank survey of foreign exchange and OTC derivatives: where does Paris rank?

Chart 1: Daily volume of activity in the main financial centres, by instrument

Growth in global transaction volumes, intensified by strong volatility linked to April’s announcements of US tariff hikes 
The Triennial Survey is coordinated by the Bank for International Settlements (BIS) and conducted by the Banque de France for France. Every three years, it collects data from the main global market participants to produce a global snapshot of foreign exchange and financial derivatives markets. The survey measures the volume of over-the-counter (OTC) activity (notional amounts) for the month of April (BIS 2025). Nearly all foreign exchange (FX) transactions are carried out on OTC markets.

The rise in global transaction volumes (turnover) observed in the April 2025 BIS survey (+27% for FX transactions and +59% for interest rate (IR) derivatives) coincides with the US announcements on trade tariffs, and especially “Liberation Day” on 2 April 2025. The news triggered a spike in financial market volatility (Chart 2) and a fall in the dollar against other major currencies, including the euro, prompting market players to adjust their FX positions and intensify their hedging strategies. As a result, April 2025, which was the recorded peak in other related markets, saw a marked rise in derivatives market turnover. It should be noted that the April 2022 Triennial Survey was also conducted during a period of heightened volatility triggered by Russia’s invasion of Ukraine a few weeks earlier.
 

Chart 2: Implied volatility of the 1-month EUR/USD spot rate

The 2025 BIS survey also confirmed that the FX and financial derivatives market is becoming increasingly concentrated in a few historical financial centres (Robinette 2022). The main venues are the United Kingdom and the United States, which continued to top the rankings for all instrument types. London alone accounted for half of total IR derivatives turnover.
 
The Asian trio comprised of Singapore, Hong Kong and Japan were next in the FX market rankings and were positioned in the same order as in 2022. Singapore continued to rank ahead of Japan, which saw a strong rise in turnover, and was positioned well ahead of Hong Kong. A few venues, such as Australia and Germany, registered strong turnover growth, with Germany ranking third in the IR market. Turnover also grew sharply in the German FX market.

In FX instruments, the French market saw a reduction in maturities, contrasting with global trends  

In FX derivatives, turnover has risen by 27% globally over the past three years, and by 13% in France. The Paris financial centre continues to rank in the global top ten, at 8th place, with daily turnover of USD 242 billion (see Chart 1). 

Chart 3: FX derivatives, distribution of transaction maturities

The main change for France versus 2022 was a reduction in maturities, with nearly two thirds of transactions showing a maturity of under seven days (Chart 3). In an unstable environment, investors relied more on the largest banking institutions: the five largest Paris-based players accounted for over 90% of total turnover (up from 86% in 2022), and the bulk of this growth was driven by cross-border transactions. As for the rest of the world, the main transaction counterparties were banks (77%), followed by non-financial customers (11%) and other financial institutions (11%).

Although the survey confirmed the rising use of electronic trading platforms, some players occasionally carried out more direct bilateral transactions, known as “voice” transactions. These offer greater security for sensitive trades when volatility is high.

As in 2022, the most important instruments were FX swaps, which allow investors to exchange one currency for another then change it back again at an agreed date (i.e. borrow one currency against another for a pre-set period). These instruments are used to hedge FX risk on the borrowed currency or to take advantage of variations in exchange rates on different currencies (arbitrage). In April 2025, FX swaps accounted for 74% of transactions in France compared with an average of 4% globally. This specificity, which can also be observed on the other European markets, probably stems from the profile of European customers, as they are relatively more exposed to securities denominated in foreign currencies (notably USD), giving them a bigger appetite for FX risk hedges.
 
The predominant drivers of global turnover growth were FX spot and forward contracts, which are used to lock in a future exchange rate; these accounted respectively for 30% and 18% of turnover in April 2025. The growth in spot turnover, to nearly USD 3,700 billion, was driven by both commercial and financial considerations. On a commercial level, players involved in global trade sought to pre-empt the tariff rises (front-loading) and the ensuing disruption to global supply chains. On a financial level, the rise can also be attributed to the unwinding of unhedged dollar-denominated positions, and to speculative trading to take advantage of heightened volatility. 

Chart 4: FX activity by currency pair

Despite depreciating over the start of the year and driving up global hedging demand, the US dollar remained the predominant pivot currency in April 2025, accounting for 90% of all trades (the sum of FX market shares adds up to 200% as each transaction involves two currencies). The euro was still the second most traded currency, accounting for 30% of trades (Chart 4). The rise in turnover was reflected in all currency pairs.

In the interest rate market, Paris ranked 4th globally with a sharp rise in activity, especially in euro-denominated contracts

Global turnover growth was particularly strong in the IR derivatives market, where it rose by 59% (Chart 1) from 2022, primarily thanks to the United Kingdom. In the euro area, turnover more than doubled to account for 14% of the total, with Germany and France recording the best performances. 

Chart 5: Interest rate activity by underlying currency

In France, as well as globally, IR swaps, which allow investors to exchange rates, were the most traded instruments, accounting for 74% of turnover.

The euro remained the most traded currency in IR derivative transactions (Chart 5), and its share of global turnover rose sharply to 38%. The dollar was the second most traded currency, but its share of turnover declined. It should be noted, however, that the BIS Triennial Survey only measures OTC IR derivative transactions and hence excludes instruments traded on organised markets, where the dollar still dominates (in April 2025, 65% of IR exchange-traded derivatives were dollar-denominated contracts). The survey also excludes non-bank financial intermediaries.
 
In conclusion the BIS snapshot from April 2025 shows the fundamental trends shaping major developments in OTC FX and IR derivatives markets: growth in turnover, an adjustment of hedging strategies to cope with higher volatility, and stable financial centre rankings, with Paris maintaining its position.