Deutsche Bank is the market share leader and Citigroup is the quality leader in the 2013 Global Foreign Exchange Services Study conducted by Greenwich Associates.
Deutsche Bank’s desks handled 10.7 percent of all FX trading worldwide, according to the annual research by the Connecticut capital markets consulting firm.
A statistical tie put three banks – Citigroup, UBS and Barclays – in second place in the market share rankings, at or near 10 percent.
“The top three dealers – Citi, Deutsche Bank and UBS – demonstrated the most momentum in FX trading last year with meaningful gains in market share,” says Greenwich Associates consultant Woody Canaday.
UBS gained share among financial customers and for its electronic trading systems, he said. Bank of America Merrill Lynch gained share among corporate and financial FX customers, he said.
Citigroup also topped a second ranking conducted by Greenwich, in which it asks corporate and financial services customers to evaluate banks on the quality of service rendered.
Citigroup’s “performance at the global level is driven by its near-dominant position among corporate FX users,’’ the study said.
The quality rankings broke down this way, in the two categories:
Among top-tier corporate customers, Citi led all dealers with a market share of 10.1 percent in the quality rankings. HSBC came in second at 8.4 percent.
Among top-tier financial customers, Deutsche Bank and UBS achieved market shares of 11.3 and 11.0 percent, respectively, followed by Citi and Barclays at 10.1 percent.
UBS and Deutsche Bank are the strongest dealers across Europe, Greenwich said, while UBS and Citigroup are the top FX desks in the United States.
HBSB beats out Barclays and Citi for the top spot in Asia.
Deutsche Bank’s 13.6 percent share of trading tops the list in Japan.
