FX poll 2009 press release: Embattled banks boosted by performance in booming FX markets

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Deutsche Bank retains top position for fifth consecutive year; Highest-ever turnover and client activity recorded in Euromoney’s industry benchmark survey.


2009 FX poll results
Methodology

Deutsche Bank has retained its position at the summit of the global foreign exchange (FX) industry by winning Euromoney’s benchmark poll. The results were announced at a dinner held in London on Wednesday night, attended by over 300 key players in the FX market.

Deutsche wins for the fifth consecutive year. The bank’s position remains dominant, with a market share of global FX business more than five percentage points higher than UBS, which retains its second position. However Deutsche’s market share fell slightly, to 20.96%, down from its record share of 21.7% in 2008. 

The top 20 banks overall in the global rankings:
Market Share
20092008BankMarket Share
11Deutsche Bank20.96%
22UBS14.58%
33Barclays Capital10.45%
45RBS8.19%
54Citi7.32%
66J.P. Morgan5.43%
77HSBC4.09%
89Goldman Sachs3.35%
914Credit Suisse3.05%
1013BNP Paribas2.26%
1110Morgan Stanley1.95%
1211Bank of America1.94%
1318Société Générale1.73%
1412Dresdner Kleinwort1.27%
1521State Street0.94%
1624Standard Chartered0.85%
1719RBC Capital Markets0.78%
1817Calyon0.63%
1916ABN Amro0.62%
2015Merrill Lynch0.54%
The banks occupying the top five positions in the poll remain the same, confirming the presence of a clear bulge bracket in the FX industry. Barclays Capital increased its market share to over 10% while retaining third place. RBS leapfrogged Citi to come fourth.

JPMorgan remains the closest challenger to the established top five. Its market share rose from 4.19% to 5.43%, and the US bank is cited as the bank to watch by those firms above them in the poll.

Two banks enter the top 10. Credit Suisse is the biggest riser, jumping from 14th place to ninth after doubling its market share to 3.05%. BNP Paribas ranks 10th overall, up from 13th, with a market share of 2.26%. Outside the top 10, Société Générale, State Street and Standard Chartered all posted strong performances compared to last year.

Leading FX banks are enjoying record profitability. Volatility in FX markets has combined with slightly wider bid/offer spreads to drive revenues higher. FX, together with other flow business, such as money markets and rates, has been one of the main drivers of improved results from investment banking units in the first quarter of 2009.

A further driver of record FX revenues is that more clients – both financial and corporate – are adopting proactive approaches to managing their currency exposures. This is reflected in a record number of responses to the survey: 12,150 valid votes were registered this year, up 24% on 2008. Total turnover was also a record, at $175.3 trillion. See methodology.

“While increased volatility has led to a reduction in the notional size of positions put on by some risk takers, more clients now realize that they have a duty to manage their foreign exchange exposures. Ultimately, this bodes well for the market,” said Euromoney in its analysis of the results available to subscribers at www.euromoney.com/fxpoll.

Zar Amrolia, Global Head of Foreign Exchange at Deutsche Bank, commented: "Winning the Euromoney poll for the fifth year running is a clear testament that our business model is working. Market participants who assume that the flow business requires less intellectual property and ability than the so-called complex businesses are missing a trick. We believe the ability to differentiate ourselves by applying intellectual capital to the way we do flow has been absolutely central to our success."

UBS, RBS and Citi may have been among the financial institutions worst hit by the credit crunch. But the fact that they maintain their positions in the top five of the industry demonstrates that an established set of relationships, and scale, remain the key to success in FX .

The market share of the top five banks remained steady, at a combined 61.5%. The combined share of the top 10 banks rose, from 76.3% to 79.7%. 

Contacts:

For more information about the Euromoney FX poll, please contact Tim Moxon, Euromoney’s head of research, at tmoxon@euromoney.com or on +44 207 779 8694.

Members of the media wanting access to the foreign exchange results should contact Maria Godden-Dowle, marketing executive for Euromoney, at mgoddendowle@euromoneyplc.com or +44 207 779 8716.

Non-subscribers wishing to access the results through either Euromoney or The WeeklyFiX’s websites should call our hotline on +44 207 779 8999.

About the Euromoney FX poll:

The Euromoney Foreign Exchange poll is the benchmark for the FX industry. It was first published in 1979. Most leading global banks judge their relative performance in foreign exchange according to their results in the Euromoney poll. As well as quantitative data on a global, regional and client and product-type basis, Euromoney also publishes qualitative performance rankings across a similar range of categories.

Headline results are published online to subscribers at www.euromoney.com/fxpoll, as well as in the May issue of Euromoney.

Full sets of results are available only to subscribers to Euromoney’s dedicated online foreign exchange news service, The WeeklyFiX, at www.euromoneyfix.com/fxpoll

More information on the foreign exchange poll