The forex market has a diverse range of participants. One way of classifying them is to group them based on buy side and sell side players.
Exhibit 3 in the curriculum (reproduced below) lists FX turnover by instrument.
FX Turnover by Instrument
|a Includes both FX and currency swaps.|
|b Includes what the BIS categorizes as ‘’other FX products.’’|
The largest turnover is in the swaps market, followed by the spot market.
Note: You need not memorize the numbers.
Exhibit 4 in the curriculum (reproduced below) lists FX flows by counterparty. Average daily FX flow between financial clients is higher than that between the sell-side banks (interbank market).
FX Flows by Counterparty.