FX Poll 2007: Methodology

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FX poll 2007: Top five consolidate lead in FX market
Summary of FX poll 2007 results
Overall Market ShareOverall Market Share By Institution type
Overall Market Share By Size of AccountOverall Market Share By Region
E-trading market shareWho’s best where?
FX servicesResearch and strategy
ForwardsVanilla options
Exotic optionsStructured FX option solutions
Best for currenciesSingle-bank online platforms
Multi-bank and independent online platforms                                           Methodology
Access the full rankings 

Euromoney collected data for its 2007 FX survey by polling named individuals at industrial and commercial corporations, financial institutions, institutional investors and state agencies.

We received 8,337 valid replies, an increase of 32% over last year’s figure of valid replies received. The poll was conducted for 7.5 calendar weeks from Tuesday, January 16th until Friday, March 9th 2007.

A further 1529, or 15% of the total of 9,866 submitted, were deleted for the following reasons

1. FX service providers were voting for themselves

2. Euromoney did not receive confirmation from the respondent of their identity.

3. Voters submitted more than one ballot.

Questionnaires were sent out as online surveys in English, French, German, Spanish, Portuguese, Turkish, Korean, Japanese, Mandarin and Russian. The questionnaire was also available on request in PDF format in English, German and Japanese.

Respondents were asked to choose from the above categories that/those which best described their business activities. A number of people chose more than one category, which is why breakdowns by votes cast may add up to more than 100%!

Overall ranking by market share: based on the total volume of FX business placed annually with each bank. To obtain this figure, we asked respondents to estimate the proportion of their total annual FX dealings placed with their 10 top counterparties.

Total business placed with each service provider across all questionnaires received was then divided by total business on all questionnaires – 124trn US dollars (up 46% on the 2006 sample size of 85trn US dollars) - to arrive at a market share figure.

Other results were compiled on a scale of 4:3:2 for first, second and third place respectively. They are NOT weighted according to volume.


Voter breakdown by region:

Western Europe

37.18%

Asia

29.06%

North America

16.34%

Central and Eastern Europe

6.87%

Middle East

3.30%

Latin America

3.21%

Australasia

2.17%

Africa

1.24%

Caribbean

0.62%

Turnover breakdown by region

Western Europe

47.81%

North America

36.36%

Asia

9.43%

Central and Eastern Europe

1.79%

Australasia

1.70%

Middle East

1.61%

Caribbean

0.80%

Latin America

0.37%

Africa

0.12%

Voter Breakdown by Institutional type

Non-financial corporations

54.22%

Banks

24.95%

Real money

8.62%

Leveraged funds

8.11%

Other non-bank financial services

6.42%

Public sector

1.60%

Electronic FX trading platforms

1.37%

Private investors

0.73%

Turnover Breakdown by Institutional type

Leveraged funds

35.70%

Banks

29.21%

Real money

14.83%

Non-financial corporations

11.01%

Other non-bank financial services

10.33%

Electronic FX trading platforms

7.28%

Private investors

0.96%

Public sector

0.47%

ALL respondents have been contacted by email or phone to confirm their identities and to obtain consistently defined turnover figures. Euromoney would like to thank all voters for their patience and tolerance in sparing approximately ten minutes, having filled out a long survey, to answer the following further questions:

1) Can you confirm your name and confirm your job title within [COMPANY]?

2) Have you received any offers of any special incentives from any service provider or counterparty in connection with the survey? (we stressed that this was confidential)

3) We have an overall Turnover figure of [X million dollars] listed for you, is that correct?:

Ø Is that in US Dollars?

Ø Are any Swaps in that figure single-counted (one leg only)?

Ø Does any amount of that figure come from market-making activities that your company does? If so, about how much? We have been especially careful in assessing turnover figures given by banks. If any bank was a market-maker in even one currency, all turnover thereby generated was deleted by Euromoney from any turnover figures given. Where clarification on this point was not received from the bank in question, we deleted the entire turnover figure.

Ø Of hedge funds: Do these volume figures include business dealt directly with your executing brokers? If you exclude all flows 'given-up' to your prime brokers but not executed by them, how does this change these volumes?

Ø If respondents did not give exact numbers, we sought approximate numbers or percents. In the case of ranges, we took the bottom of the turnover range indicated.

For voters who worked for / were affiliated with banks, e.g., brokerage affiliates, joint ventures or subsidiaries, we asked:

1) Do you have complete discretionary powers over where you place your FX business? All non-discretionary turnover was deleted..

2) How much of your business do you have to place with [whatever bank they work for / are affiliated with?

If you have further questions or queries, please email Andrew Newby, head of research, at anewby@euromoney.com


About the FX poll:
Now in its 29th year, the Euromoney FX survey is the pre-eminent poll of foreign exchange service providers. Treasurers, traders and investors worldwide rate the banks they use to conduct their currency transactions in terms of both transaction volumes and quality of service. The annual FX poll is widely considered the benchmark league table of the FX market. Results are based upon qualitative responses from thousands of companies around the world.

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