Citi still #1 for FX, but only just - Euromoney survey
by Kylene Casanova
While FX markets are undergoing significant technological change – not to mention the FX Code released this week – the top five FX banks remain remarkably unchanged, according to Euromoney's 39th annual FX survey.
The themes identified in the survey show that market players will be focusing on data and analytics to unlock many of the potential opportunities. It also suggests that FX liquidity will be increasingly fragmented in future, with volumes split across many more liquidity pools; while the latest technology – algorithms and data analytics – will be used to delve ever-deeper into the true costs of execution.
Citi stays on top, but only just
In terms of overall market share by banks, there is little change in the top five compared to last year. Citi, JPMorgan and UBS retain the first, second and third places respectively. Bank of America Merrill Lynch is fourth this year, swapping places with Deutsche Bank who this year slips from fourth to fifth. JPMorgan will be pleased with its market share this year, which has increased to 10.34 per cent from 8.79 per cent in 2016. Citi's market share fell from 12.93 per cent in 2016 to 10.74 per cent in 2017, ensuring it remains number 1 albeit with a reduced market share.
Euromoney notes that Deutsche Bank showed a long-term decline in market share, falling from 7.88 per cent in 2016, to 5.68 per cent this year. Standard Chartered on the other hand increase its market share from 1.82 per cent last year to 4.26 per cent in 2017, bringing it from 15th to ninth place.
The table below shows the top 10 FX banks – although it's of note that there are now seven non-bank players in the top 50:
Euromoney lists the FX survey's key findings as:
- Citi retains its top ranking;
- Deutsche Bank continues a long-term decline in market share;
- Standard Chartered jumps from 15th to 9th place;
- global headline volume falls by 1.9 per cent;
- overall market share among the top five banks declines to 41.05 per cent, from 44.79 per cent in 2016;
- there are now seven non-bank liquidity providers in the top 50; and
- after years of growth, electronic trading has levelled out at 64 per cent of volume.
The 2017 survey results are based on responses from 2,395 consumers of FX liquidity, representing total FX consumption of $92.9 trillion in the calendar year 2016.
Like this item? Get our Weekly Update newsletter. Subscribe today