The 2007 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity

Every three years, the Bank for International Settlements (BIS) coordinates a global central bank survey of foreign exchange and derivatives market activity. The purpose of the survey is to obtain comprehensive and internationally consistent information on the size and structure of foreign exchange and over-the-counter (OTC) derivatives markets with the aim of increasing market transparency and thereby helping monetary authorities and market participants to better monitor patterns of activity and exposures in the global financial system.

The BIS announced today that it will carry out its seventh triennial survey in April and June 2007, with the participation of 54 central banks and monetary authorities (up from 52 in 2004). The participating central banks will collect data from the respective financial institutions in their country and compile their national data for submission to the BIS. The BIS will calculate and publish the global totals. In April 2007, the data to be collected will cover daily turnover in notional amounts of foreign exchange spot as well as foreign exchange and interest rate OTC derivatives transactions. In June, the data will cover outstanding notional amounts and gross market values of foreign exchange, interest rate, equity, commodity, credit and other OTC derivatives contracts. Credit default swaps (CDSs) will be included for the first time.

The BIS has been working with central banks and monetary authorities to prepare the guidelines and reporting templates for the exercise. These will now be communicated to all participating central banks and monetary authorities, which will in turn contact the reporting financial institutions in their jurisdiction. The turnover part of the survey will be conducted on a residence (locational) basis, the amounts outstanding part on a global consolidated basis. Around 4,000 financial institutions worldwide are expected to participate in the exercise.

The preliminary global results of the turnover part of the survey are expected to be published by the BIS in September 2007, those for the amounts outstanding part in November 2007. The final comprehensive report on the survey should be available before the end of 2007.