Euromoney FX Survey Shows Top Heavy FX Distribution, Led by Citi

The 2015 Euromoney FX Survey has just been released, having shown a number of interesting points, including a shakeup in the top five global FX market share by the industry’s leading banks.

In particular, Citi managed to cling to the top spot again this year, retaining the largest market share percentage of FX trading (16.11%). Citi edged out Deutsche Bank AG, which came in second with 14.54% market share. Moreover, Barclays was third with 8.11%, while JPMorgan jumps into the top five with 7.65% - UBS finished fifth with a 7.3% market share.

Citi and Deutsche Bank now encompass nearly one-third of all FX market share amongst global banks, making their Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term one of the dominant methods for clients. The 2015 Euromoney FX Survey also reported that for the first time, e-trading has surpassed voice trading, which now accounts for 53.2% of client flow.

According to Marshall Bailey, President, ACI Financial Markets Association, in a recent statement on the FX Survey’s findings, "The findings from this year’s Euromoney FX Survey make for interesting reading. While the largest FX trading banks continue to play a dominant role, as expected, in the flow of currencies, how this flow is transacted continues to evolve is increasingly becoming an area of interest.

Overall, electronic trading is good for trading, good for transparency and good for regulatory compliance. With the foreign exchange market under scrutiny from global regulators, the adoption of electronic trading has accelerated by institutions seeking to improve the way trading is conducted. However, on days of high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term like we experienced in mid-January with the SNB decision, voice and hybrid trading is still the preferred method of trading for some participants. Client choice is key, under fair conduct and ethical conditions."

"The benefits of transparency as a result of electronic trading are numerous, and technological spend and investment has become a critical feature of modern markets, with trading and regulatory compliance increasingly achieved via electronic systems. Such innovation is good for the market and will help the industry to evolve and learn from the past,” he added.