posted Sep, 2006
Deutsche Bank AG takes the top place in the rankings of the largest foreign-exchange trading banks published in Euromoney magazine’s annual survey, ousting UBS AG from the leading position it occupied last year. Deutsche Bank’s market share stands at 16.7 percent, up from 12.2 percent last year. UBS has also increased its share to 12.5 percent from 12.4 percent. Citigroup was third, failing to get the leading position it had last year. Its market share dropped to 7.5 percent from 9.4 percent.
The greater part of the transactions in the market that added 36% in the past year is done by the three leading firms. Banks are now wooing hedge funds making bets on currencies.
``Volumes are up significantly,’’ said Sangston. ``A big chunk of that is coming from hedge funds. Hedge funds are becoming more important in foreign exchange.’’
The survey was based on 4,492 responses and is used by the banks as a marketing device as they argue that the larger firms are in a better position to produce better services.
``To be in somebody’s top three is well worth it,’’ said Sangston. ``You’re getting almost all of the flow, you’re also then able to sell other products. You’re getting a window into some of the overall business somebody might be doing.’’
Royal Bank of Scotland Group Plc and Credit Suisse First Boston did not make it this time to get to the first ten banks. The new entrants were ABN Amro Holding NV, the leading Dutch bank, and Morgan Stanley, the world’s second-largest securities firm.