Total global turnover rose from $125 trillion in 2006 to $175 trillion in 2007, according to the latest foreign exchange survey from Euromoney. The number of respondents to the survey rose by 17.5% to 9,810 valid replies.
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Key points:
- Turnover rises 41% to a record $175 trillion
- Deutsche Bank extends lead with 21.7% share of global market
- UBS consolidates second place with growing 15.8% share
- Barclays Capital breaks into top three global banks
- JPMorgan, Lehman Brothers and Dresdner Kleinwort post strong gains
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The growth in the foreign exchange market shows that it has been unaffected by the global credit crisis; indeed, many of the world’s largest banks are focused on FX as a market for continued growth while other asset classes decline.
“Far from being the commoditized product with limited growth that many have sought to describe it as, FX has proved once again that it is a thriving asset. Furthermore, with products ranging from simple to complex, it is a transparent asset that has something to offer everyone,” said Euromoney’s editor Clive Horwood.
“Over the years, FX has periodically had to face challenges from many a new product. On occasions, this has resulted in resources being diverted to other areas that have promised, but not always delivered, better returns. But FX always manages to stage a comeback and it would seem that those in charge of sell-side institutions have learnt that many of the higher-margin products that have attracted their business investment are simply not as reliable a profit stream in the longer term as FX.”
Banks and non-bank financial services institutions showed the strongest growth in turnover, both reporting gains of over 50%. FX trading platforms continue to grow, with turnover rising 37% on last year.
The diversification of the FX business beyond traditional centres in Western Europe and North America was demonstrated by dramatic growth in reported turnover in Asia (+117%), Central & Eastern Europe (+254%), the Middle East (+42%) and Latin America (+145%).
The top 5 global foreign exchange banks by turnover are as follows:
Free-to-access results:
Overall market share 2008 |
| 2008 |
2007 |
Bank |
Market share |
| 1 |
1 |
Deutsche Bank |
21.70% |
| 2 |
2 |
UBS |
15.80% |
| 3 |
5 |
Barclays Capital |
9.12% |
| 4 |
3 |
Citi |
7.49% |
| 5 |
4 |
RBS |
7.30% | |
The full set of results of the Euromoney foreign exchange survey were announced on the evening of May 7, at Euromoney’s annual FX market awards dinner.
From May 7 headline results are available to Euromoney subscribers. A more extensive set of results can be accessed by subscribers to Euromoney’s foreign exchange news service, The weeklyFiX, at www.euromoneyfix.com.
These will include a breakdown of market shares by client type and region. For more information about the poll, please contact Euromoney’s head of research, Andrew Newby, at anewby@euromoney.com.
About the Euromoney FX survey
For 30 years, Euromoney’s annual foreign exchange survey has been widely regarded as the industry benchmark for the FX market.
Euromoney polled named individuals at industrial and commercial corporations, financial institutions, institutional investors and state agencies. The polling took place from January 18th to February 29th. We received 9,810 valid votes.
Full FX poll methodology, including a list of the results released 7 May
More information on the foreign exchange poll