Foreign Exchange Market’s Leading Players Becoming Less Influential

Global foreign exchange market’s leading players are now seeing a drop in the influence graph when it comes to controlling as seen by the latest figures published by Euromoney.

The annual rankings of these traders were released by Euromoney – with the most watched ranking viewed by people was the one released on Wednesday. According to the rankings, the top 5 leading players’ shares in the market, which were combined, were dropped from 41% (2016) to 45% this year (2017).

When talking about individual rankings, Citi, which is an American banking supergiant retained its position at the top, with 10.74% of the total control of the market, which is a fall from 13% when compared to the statistics of the previous year.

The only other bank to make the list with at least 10% of the share in the market was JP Morgan, having 10.34% of the control in the market, which has risen from 8.79% in 2016.

The other banks that make the top five’s list include, UBS which is the Swiss lender, Deutsche Bank and Bank of America Merrill Lynch. These banks maintained the rankings of the previous year, except the switch made between Deutsche Bank and BAML. According to the statistics in 2017, Deutsche Bank accounted for a total of 5.68%, which has fallen from 7.88% in 2016, as per the report.

Talking about the top 10’s list, the names that made the list include, Barclays, HSBC, Standard Chartered, Goldman Sachs along with BNP Paribas, with an impressive jump made from 15th to 9th this year by Standard Chartered.

Everyday trading of nearly $5 Trillion Dollars is accounted all over the world, and a majority of it has been dominated by some of the biggest banks in the world traditionally, but talking about modern times, after the financial crisis, the dominance of these world leading banks has been reduced noticeably.

For example, talking about the reports from 2009, 61% of the market was controlled the top five forex, whereas this year the statistics have reduced noticeably to 41%. A reduction in the overall statistics can be seen with even the top 10’s, where the percentage has fallen from 80% in 2009 to 63% this year.

The launch of FX Global Code of Conduct by Bank of International Settlements, that designed it in order to lay out behavioural guidelines to Forex market traders, was followed by the release of the survey by Euromoney, with both making headlines in the same day.

About Euromoney

First published in 1969, Euromoney is a monthly magazine that focuses on business and finance.  This magazine covers subjects like debt and equity, capital markets, macroeconomics as well as global banking. You’ll also find profiles, comments and interviews with senior figures and chief executives in the finance industry. Euromoney also publishes various awards like Euromoney Awards for Excellence, Finance Minister of the Year and Central Banker of the Year. Additionally, it also publishes more than 24 surveys awards, which include the Euromoney Cash Management Survey, Euromoney FX Survey and Euromoney Private Banking Survey.