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What Changing Liquidity Could Mean for Retail Traders.
Every 3 years, the Bank for International Settlements conducts a special survey called the BIS Triennial FX Survey.
Then, the institution publishes both preliminary and final reports that pull back the curtain and give viewers a sneak peek at the dynamics impacting the global foreign exchange and OTC derivatives markets.
Both reports are crucial, especially to retail traders. The preliminary report is of utmost importance, just
like its counterpart, because it provides forex trading gurus and other entities with an early read on changing liquidity, popular currency pairs, global FX turnover, and more.
The 14th Triennial Central Bank Survey Launch
The Bank for International Settlements launched its 2025 triennial survey on April 1 st, 2025.
This is the 14 th event of its kind, with the first having been conducted in 1986. The survey’s objective is to help different entities, from regulatory authorities to retail traders, monitor and understand diverse developments in the financial markets.
The preliminary FX turnover results are expected to be published in September. They will cover many crucial aspects, including amounts outstanding in OTC derivatives. The BIS has scheduled the final reports for release a few months later. If you often engage in online forex trading with a regulated broker, such as AvaTrade, perusing both reports should be a top priority.
Global Scope and Participation
Since this is a global survey, many entities usually participate. For starters, over 1,100 financial institutions contribute data on trading activity, outstanding amounts, and other relevant information.
The main participants range from coordinators, such as national central banks, to reporting dealers, insurance companies, and online trading sites, among others.
The enormous number of participants is crucial for several reasons. For starters, it ensures regional factors don’t skew the turnover data. Additionally, it increases the likelihood of providing insights from both developed and emerging markets that retail traders can use to make more informed trading decisions.
Why “Changing Liquidity” in the Preview Matters
The BIS provides traders and other entities with a comprehensive view of shifting global liquidity. In simple terms, liquidity refers to the ease with which financial assets can be bought and sold without affecting their market price.
When experts mention changing liquidity, they are talking about changes in how easy it is for traders to open and close positions at size.
The insights on changing liquidity offered by the BIS 2025 triennial preliminary report are essential for several reasons. To begin with, liquidity changes can affect spreads, with higher liquidity facilitating tighter spreads, and vice versa. In addition, perceptible shifts often affect overall execution quality and profitability.
The September preview of the final BIS 2025 Triennial FX Survey report is a must-read for every trader interested in seeing how trading is evolving beneath the surface.
Keep an eye out for its release and, when it’s finally available, review every critical detail, starting with information regarding changes in liquidity.
Use the insights you gain to adjust your strategy and avoid trading blindly. If the signs point to tightening conditions, consider focusing on the most liquid assets, as they often retain lower volatility spikes and better pricing.