LONDON, Jan 26 (Reuters) - Transaction costs for trading the world's most liquid currencies rose in 2015 after the Swiss National Bank stunned markets by removing a cap on the franc, research by an independent broker showed on Tuesday, potentially weighing on volumes.
"G-10 currencies as a group witnessed an increase in transaction costs since the SNB - rising by $40 per million by year end, nearly $60 per million higher from February to May, and then again from September to December of 2015," ITG, a broker and financial technology provider, said.
After the SNB's action in early January 2015, volatility and volumes in currency markets waned with many investors and banks preferring to remain cautious about venturing into the market in a significant way.
Volumes also took a hit as the industry came to grips with market manipulation scandals and banks' unwillingness to take on more risk.
A survey by the Bank of England on Monday showed volumes in London, the main centre for foreign exchange trading, were down 13 percent in the six months to October 2015 and 21 percent lower from a year. (Reporting by Anirban Nag, editing by Jeremy GauntA)