May 1998

FX poll 1998: A tough race gets tougher


Banks everywhere are muscling in on foreign exchange - just as the costs of building a forex business are rising and spreads are tightening. Europe's commercial banks are trying to replace business lost with the onset of Emu. US investment banks are bolting forex on to their core activities. They can't all be winners. But, as Antony Currie reports, they can make life harder for those already at the top. Euromoney's 20th annual foreign-exchange poll follows. Research by Rebecca Dobson.


FX Poll 1998: The Results
FX Poll 1998: Plotting the death of settlement risk

"At the start of last year there were still a lot of wannabes in this business," says David Barnett, vice-president, trading, Europe and Asia, for Royal Bank of Canada. "Now it's pretty clear to everyone that there are a maximum of 20 major players. And within that group, the big boys are pulling away and the rest are scrambling to keep up with them."

A combination of bank consolidation, corporate mergers, the Asian crisis and the growing role of technology is responsible for this. For the top tier they present a new series of opportunities (assuming they don't fall victim to a vicious merger or takeover); for the rest, it's crunch time.

The introduction of the electronic broking system and Reuters' foreign exchange trading system in the mid-1990s has made dealing prices more transparent and driven...

More information on foreign exchange


The rest of this article is available to subscribers only

Please Subscribe or take a Free Trial below.
Already a subscriber? Log in here.