The biggest change in the rankings this year is the decline of the combined market share of the top five global banks. Their market share in the survey peaked in at This year the top five banks account for just The hopes of many global FX heads and their investment bank bosses — that the share of the big banks would rise inexorably as the market became more automated and that they would be able to benefit from oligopolistic pricing power as a result — now seem like distant and deluded dreams.
That winning market share is the lowest for any top-ranked bank in the survey since UBS won the survey in It rises one place this year to win in corporates and overall electronic market share, although it falls to third overall for options.
It was once the undisputed leader in global foreign exchange, losing the top position in the Euromoney rankings three years ago after nearly a decade of dominance. In the latest set of rankings, Deutsche falls from second to fourth place overall: It remains the leading overall options house. Perhaps the most surprising fall of all is in its overall electronic market share.
This year, Deutsche can only manage fourth place in e-market share, from holding the top ranking last year, and its share has fallen from Two banks overtake Deutsche to move into the top three overall, but the similarities end there: JPMorgan jumps to second place in the survey, with a market share of 8.
For many years, competitors have said that JPMorgan has failed to punch its weight in FX; it has typically ranked outside the top five overall banks in the Euromoney survey for the last decade. The US bank rises across a range of categories. UBS returns to the top three global FX banks overall this year.
Last year it fell to fifth place, its worst performance in a decade, with a market share of 7. Its overall market share rises to 8. Like JPMorgan, it is a laggard in options, where it ranks seventh.
At the former, Troy Rohrbach has overseen the FX business since he now also runs rates and public finance globally ; at UBS, Chris Murphy and George Athanasopoulos, the global co-heads of FX, rates and credit, both joined the bank more than five years ago and have jointly run the division since Leadership, it seems, does count.
Bank of America Merrill Lynch continues its steady rise up the rankings of recent years, from a nadir of 12th place from to It finally breaks into the top five global FX houses overall, up from sixth place last year. BAML jumped up the rankings into the top five for corporates and real money accounts, and gained ground in both swaps and options — in the latter, it ranks second globally. But BAML still has work to do in the electronic market, where its overall ranking fell from sixth to seventh place.
Other US banks also performed well. Goldman Sachs rose from ninth to seventh overall and Morgan Stanley jumped three places to break back into the top It has not been a good year in FX for Barclays. The UK-cum-transatlantic bank dropped from third place overall to sixth, and its market share from 8. Among client groups, its biggest reversal came among real money accounts, falling from fourth place last year to outside the top HSBC has also had a disappointing year, falling from seventh to eighth place overall.
It also loses its top ranking among corporates last year, falling out of the top five of that client category altogether. Banks have always risen and fallen in the Euromoney rankings over the last 40 years, but this year sees a new phenomenon — the advent of the non-bank liquidity provider. In its first year of eligibility, the spot-only XTX makes a stunning debut: XTX is the leader, but not the only non-bank entrant to the survey.
The banks above it are, for the most part, the remaining price-makers; the banks below often price-takers, with the ability to make markets in particular currencies or products.
Many of the banks ranked outside the top 10 overall this year are understood to be sourcing liquidity from non-bank providers such as XTX, Tower and Jump. They look set to gain more market share in the future, helped by new technology, more defined business models and a lower-cost infrastructure base than the traditional FX banks. They could look to build capability in forwards and other markets in the near future.
View the full results on the Euromoney website now. For questions about the survey please contact Tessa Wilkie tessa. If you are interested in seeing more detailed data from the survey, please contact Mark Lilley mark. New phenomenon Banks have always risen and fallen in the Euromoney rankings over the last 40 years, but this year sees a new phenomenon — the advent of the non-bank liquidity provider. Euromoney For questions about the survey please contact Tessa Wilkie tessa.More...