| NEW YORK, March 5
NEW YORK, March 5 Deutsche Bank, UBS, Citigroup,
and Barclays continued their dominance of the global foreign
exchange market in 2013, garnering 46.7 percent of top-tier
customer trading volume, financial services research firm
Greenwich Associates said on Wednesday.
The four banks' share grew six percentage points from 2012
as the $5.3 trillion currency market continued to move toward a
primarily electronic marketplace. In the United States, the four
dealer banks had an aggregate market share of close to 53
percent last year, up from about 42 percent in 2012.
The biggest beneficiaries of the shift into electronic
trading were banks with the best trading platforms, Greenwich
"In general, it is the biggest banks that are able to afford
the sizable investments needed to build, deploy and maintain
these sophisticated platforms," Greenwich Associates consultant
Peter D'Amario said in the report.
Deutsche Bank was the top FX bank last year, capturing 12.4
percent of the market. UBS came in second with 12.1 percent.
Citi had 11.7 percent; Barclays 10.5 percent, with J.P. Morgan
rounding out the top five banks, with a 6.2 percent share of the
The report also showed that global FX trading volume grew 14
percent last year, with strong growth posted in Europe and
Japan. Global growth was driven largely by an increase in
trading activity among financial institutions, which rose 18
Financial institutions also stepped up their usage of
electronic platforms to 77 percent, up three percentage points
from 2012, while retail aggregators upped the share of their own
business done through electronic systems to 98 percent from 93
The increase in trading volume in emerging market currencies
contributed to the continued growth of electronic trading. In
2013, the average share of emerging market currency cash trading
volume executed electronically rose to 56 percent last year from
52 percent in 2012.
Electronic FX volumes are also getting a boost from currency
options, which are often traded through single-dealer platforms
that customize trades for clients. The share of global FX market
participants trading currency options electronically increased
four percentage points to 28 percent last year.