SO IT WASN'T a blip. When UBS scored a rare victory over Citigroup to be recognized in our poll last year as the bank with the largest market share in foreign exchange, some rivals sought to convince themselves it was a statistical error. This year, though, not only has UBS won the top spot again; it has also increased its market share. What is more, Citigroup has been shoved squarely into third place in the market share rankings by Deutsche Bank. After over 20 years of consistently leading in this poll, Citigroup has seen its dominance of the market crumble.
The sample size for Euromoney's 2004 poll is significantly larger than it was last year, when 1,901 valid replies represented $17 trillion in annual turnover. Out of the $24 trillion that is transacted by the 3,501 valid respondents to the poll this year, just $40 billion separates UBS and Deutsche. That kind of difference can be wiped out by a single vote.
Neither firm thinks its period of growth in this industry is over. "It is still a top-line strategy to grow our business," says Fabian Shey, global co-head of FX distribution at UBS.