Transparency of FX quotes

[pers]

This is an excerpt from the very reputable book "Trading and Exchanges." Is this statement still relatively accurate (book published in early 2000s)? I'm particularly interested in contrasting quotes transparency in FX markets to that in futures markets. I realize the last paragraph is the author's projection about this but I'm interested in knowing how this transparency fared since then.

 

[qlai]

Excellent question. Was curious myself. I suspect it's somewhat similar to upstairs trading where real size is still done over the phone.

 

[traderjo]

The way I see it is perhaps it has to do with the built in leverage and notional value
Where as with shares transactions ( as settled, not day trading) actual cash needs to be there and changed hand
Hence the total "volume" of Margin traded FX would be more than equity
so for example
A FX broker can say on my internal book 100 million of USD EUro was traded today .. in real (assuming 1:100 leverage) all that is needed to "Claim" 100 million turnover is 2 Million dollars of ACTUAL money , 1 Million with the buyer and 1 Million with the seller
All the "Broker" does it Mark to Market each side
Where as for a "Exchange to claim that 100 Million of say MSFT shares were traded over last few days actual 100 million need to change hand.

Correct me If I am wrong

 

[Variss]

I also find that transparency in derivatives markets including futures is lagging in transparency. It might be because these are not only traded on regulated exchanges but there are many institutional traders who do not publish information about volumes

 

[comagnum]

This chart is based on the settlement or cash value - not the notional. The Fx market dwarfs the futures & equity markets.

 

[maxinger]

This chart is based on the settlement or cash value - not the notional. The Fx market dwarfs the futures & equity markets.


View attachment 216865

I doubt the forex market data can be trusted.

 

[comagnum]

The forex market size is based on trading settlements calculated by more than one central bank. The worlds traded money supply being far larger that what is speculated in futures & equities markets should not be hard to understand.

 

[IAlwaysWin]

I doubt the forex market data can be trusted.

Do you trade Forex?

 

[maxinger]

Do you trade Forex?

I don't trade forex.
I traded forex decades ago.
You can't get reliable volume based chart for forex.

Now I day trade currency futures.
I can get reliable data feed from say CME to plot volume based chart

 

[IAlwaysWin]

I don't trade forex.
I traded forex decades ago.
You can't get reliable volume based chart for forex.

Now I day trade currency futures.
I can get reliable data feed from say CME to plot volume based chart

I'm about to dig into learning more about futures. It's a little bit of a learning curve, have to find the time and patience for it though. I do love Forex, it's easy money.