Platform Securities reports substantial increase in FX trading since Brexit vote
Platform Securities, a leading provider of custody and trading services to wealth managers, can report that currency trading has increased dramatically since the Brexit vote in June. Statistics gathered by Platform Securities show that the second half of 2016 saw a 25% spike in currency trade volumes compared with the same period in 2015. Most notably, July saw a 60% increase from the same month last year, with GBP/EUR in particular seeing a huge upsurge.
The FTSE100 index has risen by more than 20% since the vote to leave the European Union in June 2016, although some of this rise may be attributable to the fall in value of the pound. Sterling has experienced a fall of more than 15% over this time period due to market uncertainty about the UK’s new relationship with the EU. An observation of increased enquiries amongst clients regarding overseas assets and currencies led Platform Securities’ dealing desk to gather statistics relating to currency transactions carried out.
Nigel Reynolds, CEO of Platform Securities Commented “Whilst some of this increase can be put down to new clients joining us, it is telling that FX trades have increased quite so significantly. Many of these trades would be our clients taking advantage of the multi-currency facilities we offer in order to diversify their investors’ portfolios”.
Cable was the most commonly traded currency pair across 2016, followed by GBP/EUR and then GBP/CHF. Several clients took advantage of the wide array of currencies offered; there were trades in Emirati Dirham, Polish Zloty and South African Rand. As a proportion of assets held, between the start of June and the end of December, international holdings grew by 8%, and non-sterling cash held grew by 12%.
Platform Securities works with many leading UK wealth managers, and offers the ability to hold assets and currency from many different countries around the world, all within a single account for the underlying client. Through Platform Securities’ Jersey operation, clients may hold assets offshore for their high value non-dom and non-res clients.
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