JP Morgan nabs FX market share from Citi and UBS

Ranking of top FX dealers reveals a significant redistribution of market share this year.

JP Morgan has steamed ahead of Citi, UBS and Deutsche Bank to hold the most FX trading market share this year, according to Greenwich Associates.

The 2017 Greenwich Share Leaders rank highlighted a significant redistribution among top dealers in the FX markets compared with a year prior.

In 2016, the rank showed Citi and UBS held the greatest market share, followed by Deutsche Bank and JP Morgan.

The report explained banks like JP Morgan are generally restructuring their FX capabilities, opting for a more broad-based global strategy and capturing market share along the way.

Top FX dealers are also narrowing the scope of their coverage and shifting towards specific products they see the best potential for profits.

Some banks are also shying away from G10 swaps in favour of G10 spot trades, as others are focusing on particular clients, often targeting their resources toward banks or hedge funds.

In 2016, Bank of America Merrill Lynch ranked top among participants for FX service, sales and trading quality, however this year, Citi and JP Morgan overtook the bank in the trading quality rank.

Woody Canaday, managing director at Greenwich, explained: “In some cases, banks that have ‘lost’ market share at a market-wide level have actually gained share in their areas of focus, which presumably represent the most profitable parts of their business.”