US banks’ FX notionals hit record $66trn on forwards frenzy
JP Morgan leads record derivatives surge amid Q1 market volatility
US banks’ notional amounts of foreign exchange derivatives surged 19.2% to a record $65.76 trillion in the first quarter, as volatility-wary market participants sought refuge in forwards.
More than a quarter of the $10.61 trillion aggregate increase accrued to JP Morgan, which reported a $2.7 trillion rise in FX notionals – or 21%. Morgan Stanley followed with a $2.42 trillion increase – the
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