Key facts
- US buy-side firms expanded their foreign exchange derivatives positions in the first quarter.
- Mutual funds and ETFs saw a 15.6% increase in FX forwards notional.
- Options notional for funds climbed by 16.6%.
- Insurers' forwards positions grew by nearly 10%.
US buy-side firms significantly increased their foreign exchange derivatives positions during the first quarter, according to disclosures from mutual funds, exchange-traded funds, and life insurers. Among funds, the aggregate notional value of FX forwards jumped 15.6%, while options notional climbed 16.6%. Insurers also boosted their forwards positions, with an increase of nearly 10%.