The Riksbank’s Financial Markets Survey: Fixed income and foreign exchange markets functioning somewhat better

The Swedish Central Bank, Riksbank, has published the results of its first Financial Markets Survey 2023. The survey is conducted twice per year and addressed at all market participants active in the Swedish foreign exchange (FX) and fixed income markets. The purpose of the survey is to assess market activity and risks in the FX and fixed income market and the overall stability of the Swedish financial market.
The main findings of the survey are as follows:
– Market participants are more optimistic in terms of market liquidity, FX-trading, and the Swedish fixed income market.
– Participants in the Swedish FX and fixed income markets believe that they are taking about the same risks than they took in the fall 2022, with a tendency to a decline in risk-taking.
– Participants feel well prepared for „market, liquidity and credit risks“.
– According to the majority of the participants, the Swedish fixed-income market is functioning poorly which compares to „very poorly“ in the previous survey.
– The foreign exchange market is perceived as functioning better than in the fall of 2022 with fewer participants stating that they FX market is functioning poorly.
This report presents the results of the survey responded to in the period March 7 through March 28, 2023. The report including the findings can be found here.