RPT-Deutsche tops FX industry poll, but Citi closing in

Thu May 9, 2013 2:13am EDT

Related Topics

* 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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