Citi and Deutsche Bank share pole position in the global foreign exchange (FX) market in the 2015 Greenwich Leaders league compiled by Greenwich Associates.
The market intelligence firm reports that the two firms are deadlocked atop the global FX market, with market shares in trading of 11.6-11.7%. UBS and Barclays are next, tied with market shares of 10.0-10.2%. JP Morgan rounds out the global top five with a market share of 7.4%. These firms are the 2015 Greenwich Share Leaders in Global Top-Tier Foreign Exchange Market Share.
According to the report, among the leading dealers JP Morgan stood out in 2014 for gaining market share, a feat that narrowed the gap between the bank and the four traditional global FX leaders. Citi was also notable for maintaining stable market share from year to year. Bank of America Merrill Lynch posted the largest gain in market share this year. BNP Paribas and Goldman Sachs also gained meaningful share.
“With market shares trending lower among the world’s largest FX dealers, stable is the new up,” said Greenwich Associates consultant Tim Sangston.
Financial institutions and companies reduced the share of their FX trading volume executed through the world’s leading FX dealers last year. In the current environment, a less concentrated FX market might actually be welcomed by some of the world’s biggest FX dealers, the firm notes.
Facing balance sheet pressure and intense scrutiny from regulators, some of these top firms are taking a more balanced approach between maximising market share and client profitability.
“Meanwhile, the movement of trading volumes to electronic, multi-dealer trading platforms is making it easier for customers to spread their business more widely among dealers,” said Greenwich Associates consultant Woody Canaday.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more