Euromoney Foreign Exchange Awards 2023: Technology, infrastructure and innovation – best bank FX liquidity provider: UBS
UBS is a powerhouse in the FX industry with a strong reputation for liquidity provision.
The Swiss firm has led from the front and has made good progress over the past year to develop and roll out new innovations.
The most important of these has been the release of its next generation pricing model at the beginning of the year. While previously UBS was tied to finding the best fit for each client out of a dozen pricing algorithms based on their execution style, liquidity and skew requirements, today a client’s liquidity can be tailored throughout the spectrum of risk factors driving pricing.
This means that UBS has gone from a handful of liquidity templates to bespoke pricing for every individual client – if it does not exist, it gets created. UBS has redefined tailored pricing through the introduction of this model.
“We are very proud to be recognised in the Euromoney FX awards as the best bank FX liquidity provider,” says Paul Buttenmueller, global head of eFX trading. “Liquidity provision lies at the heart of any bank offering, and we continue to innovate and push the dial. Our offering is cutting edge, and the team works hard to ensure we are able to provide the best services possible for our clients.”
UBS eFX trading claims a market share of between 10% and 20% each month across currency pairs. In external market-share surveys, this is confirmed to be above 14% in G10 and 18% in emerging markets.
Consistency of liquidity provisioning is central to any franchise. UBS has provided unaltered liquidity in some of the most challenging market conditions, such as during the Ukraine invasion in February 2022, Turkish Lira market dislocation in November/December 2021, or during the market turmoil caused by the Silicon Valley Bank collapse.
The recent release of its next generation pricing models for both streaming and request-for-quote spot should cement the bank’s market position further.