Citigroup Inc Ends Deutsche Bank’s 9-Year Reign As Biggest Currency Trader

Citigroup Inc Ends Deutsche Bank’s 9-Year Reign As Biggest Currency Trader
By Deutsche Bank AG (GIF format logo) [Public domain], via Wikimedia Commons

The shift at the top follows the release of a new survey published by Euromoney Institutional Investor Plc.

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When Citigroup Inc (NYSE:C) last held the lead over Deutsche Bank twelve years ago they claimed 16.04% market share which edged Deutsche Bank AG (USA) (NYSE:DB) (FRA:DBK)’s 15.67%. Last year, Citibank nearly caught its German rival but fill a mere 0.28% short of the title. Presently the foreign-exchange market is a $5.3 trillion a day arena for traders that are facing reduced revenues following stimulus efforts by banks all over the globe that mute the trends that traders use to make money in the exchange.

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Lower euro volatility

“We’re a big euro bank and it’s not helped that the euro has not been a focus of attention over the past 18 months,” said Kevin Rodgers, global head of foreign exchange at Deutsche Bank AG (USA) (NYSE:DB) (FRA:DBK) in London. “Currency volatility in my career hasn’t been down at these levels for any length of time, ever. What will cause it to bounce, I don’t know.”

To illustrate this, the Euro just a few weeks ago traded in the narrowest range since the currency began trading in 1999. In the last week of April the currency moved a mere 0.7 U.S cents trading in the range between $1.3785 and $1.3855.

Euromoney compiles its rankings by surveying traders it the foreign-exchange markets. This year saw 14,050 responses to the survey and those that responded turned-over $225 trillion. This is the first time that Deutsche Bank AG (USA) (NYSE:DB) (FRA:DBK) hasn’t held the lead since the 2005 survey. However, for Citigroup Inc (NYSE:C) it may mark the return to its heyday when the bank led the survey for the first 23 years after the survey was begun.

New trading chief comments

Citigroup Inc (NYSE:C)’s move to the top spot “is a validation of our continuing effort to better serve our clients by providing them the best pricing, trade execution and advisory services,” Nadir Mahmud, the bank’s global head of foreign exchange and local markets, said in a recent email.

Citigroup Inc (NYSE:C) named Mahmud as its trading head in February following a move from Singapore to London. His predecessor, Anil Prasad, left Citigroup Inc (NYSE:C) to “pursue other interests.”

Citigroup receives about 4% to 5% of its revenue from currency trading, well above that of its peers. That number was published yesterday by John McDonald of Sanford Bernstein.

“The macro challenge is for FX market users to be confident that it is a legitimate, transparent and fair market to operate in,” said James Wood-Collins, chief executive officer of U.K.-based currency manager Record Plc. “It’s an exceptionally well-functioning market. It’s particularly important our clients are aware of that and aren’t put off sensible risk management or return-seeking activity.”

Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) barely tipped UBS AG (NYSE:UBS) for the third spot with a 10.91% market share compared to UBS at 10.88% with the fifth spot going to HSBC Holdings plc (ADR) (NYSE:HSBC).

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at</i>
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