Deutsche Bank this year won Euromoney's foreign exchange poll as the bank of preference for the highest volume of client business. Hal Herron, global head of foreign exchange, sees this as the culmination of a campaign which began in 1995, when Deutsche languished at around number 20 in the poll.
There's no doubt, he says, that the advent of the euro worked in Deutsche's favour. The euro became a global currency and Deutsche is a global player with a deep knowledge of European markets and the European client base.
The age of the niche currency player in Europe has gone. "Overall volume may have been reduced by the advent of the euro, but major institutions have seen a bigger share of the market," Herron says.
Deutsche's other two advantages have been its institutional client base - institutional investors have a larger proportion of global currency flows than in the past - and the increased use of currency options as a hedging and positioning tool. "In 1995 options revenue would have accounted for less than 5% of Deutsche Bank's fx revenues, now the figure is more like 30%," says Herron.