Foreign exchange trading volumes in London have surged by 39 per cent in the past year, with turnover in New York up by 31.5 per cent in the same period, figures released on Monday showed.

The surge in volumes has been attributed to the continuing emergence of foreign exchange as an asset class in its own right, the onward march of the hedge fund, higher volatility across all asset classes, rising global imbalances and the expansion of electronic trading platforms.