ANNUAL SURVEY: UNCERTAINTY BREEDS CURRENCY
By Gordon Platt
selects the leaders in the world's biggest financial market,
where trading averages $4 trillion a day.
Europe's sovereign debt crisis, China's monetary tightening and
the Federal Reserve's quantitative easing are creating turbulence
in the foreign exchange market. Uncertainty about the outcome of
these events has heightened volatility and increased the need for
protection from currency exposure in global business dealings and
investments. Meanwhile, foreign exchange remains one of the
fastest-growing asset classes, and average daily volume has reached
Emerging market currencies account for a growing share of the
trading, as investors and multinational corporations increase their
exposure to the fast-growing markets of Asia, Africa and Latin
America. The best foreign exchange banks provide the customer
service and advice to enable their clients to take advantage of the
new opportunities in international markets without falling victim
to sudden adverse currency moves.
Celent, a Boston-based consulting firm, says growth in trading is
being driven mainly by the spot foreign exchange market. It also
sees a big opportunity in the further expansion of electronic
trading in Asia. FX prime brokerage is growing in stature, and
algorithmic trading is becoming more common. Celent estimates that
50% of active traders use FX algorithms, up from 33% in 2008.
The foreign exchange market is continuing to evolve, as technology
advances and potentially dramatic regulatory changes are being
considered. Better risk-management and hedging techniques are
emerging. Corporations around the world need to select a strong,
knowledgeable FX bank to help them cope with the turbulence in the
markets, which is greater than has ever been seen before.
In this year's foreign exchange awards, Global Finance selected
Deutsche Bank as the global winner. We also chose the leading
foreign exchange banks in 86 countries or regions, as well as the
best online trading systems, including bank-owned, independent and
retail trading systems. In addition, Global Finance selected the
best bank for foreign exchange research, as well as separate award
winners for fundamental research, technical research, currency
forecasts, and strategy and hedging.
With input from industry analysts, corporate executives and
technology experts, Global Finance selected the winners based on a
range of objective and subjective factors. Our criteria included
transaction volume, market share, global coverage, customer
service, competitive pricing and technology.
Click on the following links to read more:
Best Foreign Exchange Research & Analysis
Best Online Foreign Exchange Trading Systems