Bulge Bracket Banks Continue To Dominate FX, But….

The bulge bracket banks are losing ground in foreign exchange market share, with causation for the rare phenomena being a decision made by the banks, not the customers. Nonetheless, the top FX dealers in a 2016 Greenwich Associates study continued to reflect the world’s dominant financial intermediaries – JPMorgan, Citi, UBS and Deutsche Bank finishing in fourth place. Tied for fifth were Bank of America Merrill Lynch, Barclays, HSBC, and Goldman Sachs. In part, causation for the loss of market share is market maker profitability, which can impact liquidity.