RPT-Deutsche tops FX industry poll, but Citi closing in
* Deutsche leads survey for 9th straight year * Citi sees largest jump in market share among top 10 * Top 5 banks account for 57 pct of market share * BAML replaces Goldman Sachs in top 10 By Anooja Debnath LONDON, May 8 (Reuters) - Deutsche Bank had the biggest share of the foreign exchange market for the ninth year running but second-ranked Citi significantly narrowed the gap, a Euromoney poll showed on Wednesday. The 2013 annual survey was the second closest on record, with just 0.28 percentage points separating the top two banks. Deutsche accounted for 15.18 percent of the $5 trillion a day FX market, up from last year's 14.57 percent but way off its peak in 2008 when its share was 21.7 percent. Citi saw the largest spike in its market share among the top 10, jumping to 14.90 percent from 12.26 percent. Citi's global head of G10 foreign exchange, Jeff Feig, said the launch of the Velocity 2.0 trading platform had contributed to the increased share. "We added approximately as many users in the last quarter of the year as we did in the first three (quarters). The dealing in Velocity 2.0 sky-rocketed and the market share went up." Deutsche was top in electronic and options trading while Citi led the rankings in spot and emerging market trading. Barclays came in third in the overall survey with 10.24 percent, followed by UBS on 10.11 percent. Of the top 10 banks only Deutsche, Citi and HSBC increased their market share, while Credit Suisse and Barclays suffered the steepest drops. The only change in ranking was Bank of America-Merrill Lynch replacing Goldman Sachs in 10th spot. The top five hold 57 percent of the FX market, up from 55 percent last year, as banks with deeper pockets seized market share from smaller players. "In an overall environment where margins are declining, you need greater access to liquidity in order to transact and bigger institutions have that," Citi's Feig said, adding it was also necessary to keep investing in new technology. Although volumes have held up in 2013, increased trading in the yen after aggressive monetary easing in Japan has been offset by relatively quiet trading in euro/dollar. "This is turning into a slightly tricky year as volatility is not that high," said Kevin Rodgers, global head of foreign exchange at Deutsche Bank. The poll reflected responses from 16,298 of the banks' clients and was conducted over six weeks in January and February. Overall - 2013 Overall 2012 ----------------------------- ----------------------- Rank Bank Market Bank Market Share Share 1 Deutsche Bank 15.18% Deutsche Bank 14.57% 2 Citi 14.90% Citi 12.26% 3 Barclays 10.24% Barclays 10.95% 4 UBS 10.11% UBS 10.48% 5 HSBC 6.93% HSBC 6.72% 6 J.P. Morgan 6.07% J.P. Morgan 6.60% 7 RBS 5.62% RBS 5.86% 8 Credit Suisse 3.70% Credit Suisse 4.68% 9 Morgan Stanley 3.15% Morgan Stanley 3.52% 10 BAML 3.08% Goldman Sachs 3.12% ------------------------------------------------------------
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