Best Financial Institution Foreign Exchange Awards 2019: A Bumpy Ride In Fracturing Markets

Global Finance selects the best foreign exchange banks in 113 countries.

A group of representatives from Citi, which won numerous awards, including the top award for Best Global Foreign Exchange Bank.

The past few months have been a bumpy ride for currencies, and no more so than in August, when an emerging markets selloff caused foreign exchange trading volumes to surge.

But for FX traders, volatility often equals opportunity, and the unwinding of central banks’ massive balance sheets, coupled with renewed inflation expectations, is giving them plenty of drama to act upon. Brexit, Italy’s populist government, Trump and trade wars are likely to keep life interesting in the months ahead, as well.

The real change in the $5.3 trillion-a-day FX market, however, may involve where and how traders at financial institutions and corporations do business, rather than the current ups and downs of the market itself. Thanks to the expansion of electronic trading, buyers and sellers continue to shift significant volumes between and among trading venues, depending on style and region, according to a report by Greenwich Associates.

“On many trades, the most important question for traders now is not whether to trade electronically or call a dealer, but rather, which electronic venue to use for execution,” says Ken Monahan, senior analyst in the firm’s Market Structure and Technology practice.

As major dealers decide how to allocate their technology spend, they must choose between providing liquidity on their own single-dealer platforms and improving their presence on top multi-dealer platforms, Greenwich says. Both are critical to major dealer franchises.

The business of FX is changing in other—positive—ways, as well. Adherence to the global code of conduct for wholesale foreign exchange markets that the Bank for International Settlement released in 2017 is gaining momentum. The voluntary code was established to promote principles of good behavior in the market.

FX traders’ response to market volatility, their response to the rise of electronic trading, and the need to bring their practice into conformity with global standards are just a few of factors that influenced the selection of Global Finance’s 19th annual World’s Best Foreign Exchange Providers Awards. Once again, along with four global awards, we selected winners in 113 countries and seven global regions, plus the best banks for FX research and analysis and FX trading technology. This year’s categories and winners are highlighted below.


WORLD’S BEST FOREIGN EXCHANGE

PROVIDERS 2019

GLOBAL WINNERS

Category
Bank
Best Global Foreign Exchange Bank Citi
BestFX Provider For Corporates Société Générale
Best FX Provider For Emerging Markets Currencies Standard Chartered Bank
Best Liquidity Provider State Street

REGIONAL WINNERS

Africa Standard Bank
Asia-Pacific DBS Bank
Central & Eastern Europe Société Générale
Latin America BBVA
Middle East National Bank of Kuwait
North America Citi
Western Europe HSBC

FOREIGN EXCHANGE RESEARCH & ANALYSIS

FX Research BNY Mellon
Fundamental Analysis BNP Paribas
Technical Analysis Goldman Sachs
Forecasts CIBC Capital Markets

BEST BANK FX TRADING TECHNOLOGY

Best Bank Platform (Overall) Citi Velocity
Most Innovative Bank Platform Shinhan SOL
Best Platform For Corporations Sberbank Markets
Best Execution Algorithms Société Générale
Best Big-Picture View Of Positions BNP Paribas
Best Big-Picture View Of Positions Citi Velocity’s Command Centre
Best End-To-End Processing J.P. Morgan’s Execute

COUNTRY WINNERS

Algeria Bank ABC in Algeria
Angola Banco De Fomento Angola
Argentina BBVA Francés
Armenia Ameriabank
Australia ANZ
Austria UniCredit Bank Austria
Bahamas CIBC FirstCaribbean International Bank
Bahrain Ahli United Bank
Bangladesh Sonali Bank
Barbados CIBC FirstCaribbean International Bank
Belarus BPS-Sberbank
Belgium KBC Bank
Belize Atlantic Bank
Bermuda Bank of NT Butterfield & Son
Bolivia Banco BISA
Botswana First National Botswana
Brazil Itaú Unibanco
Bulgaria First National Botswana
Canada RBC Capital Markets
Chile Banco de Chile
China Bank of China
Costa Rica BAC Credomatic
Côte d’Ivoire Société Générale de Banques en Côte d’Ivoire
Cyprus Eurobank
Czech Republic SOB
Denmark Nordea
Dominican Republic Banco Reservas de la Republica
Ecuador Banco de Guayaquil
Egypt Arab African International Bank
El Salvador Banco Cuscatlan
Estonia Swedbank Estonia
Ethiopia Dashen Bank
Finland Nordea
France Société Générale
Gambia Ecobank
Georgia TBC Bank
Germany Deutsche Bank
Ghana Zenith Bank Ghana
Greece Eurobank Ergasias
Guatemala Banco Agromercantil
Honduras Banco Ficohsa
Hong Kong The Bank of East Asia
Hungary OTP Bank
Iceland Arion Bank
India ICICI Bank
Indonesia Bank Mandiri
Iraq Bank of Baghdad
Ireland Investec
Israel Bank Leumi
Italy UniCredit
Jamaica National Commercial Bank
Japan Nomura
Jordan Arab Bank
Kazakhstan Fortebank
Kenya CfC Stanbic Bank
Kuwait National Bank of Kuwait
Kyrgyzstan Demir Kyrgyz International Bank
Latvia SEB
Lebanon BLOM Bank
Lithuania SEB
Luxembourg Banque Internationale à Luxembourg
Macedonia Komercijalna Banka AD Skopje
Malaysia Public Bank Berhad
Mexico Citibanamex
Moldova VictoriaBank
Mongolia Khan Bank
Morocco Attijariwafa Bank
Netherlands ING
New Zealand ANZ
Nicaragua Banco LFISE Bancentro
Nigeria Stanbic IBTC Bank
Norway Nordea
Oman Bank Muscat
Pakistan Standard Chartered Bank
Palestine Bank of Palestine
Panama Banco General
Parguay Banco Itaú Paraguay
Peru Banco de Credito del Peru
Philippines BDO Unibank
Poland PKO Bank Polski
Portugal Millennium bnc
Puerto Rico Banco Popular
Qatar Qatar National Bank
Romania BRO-GroupeSociété Générale
Russia VTB Capital
Saudi Arabia SABB
Sierra Leone Zenith Bank
Singapore OCBC Bank
Slovakia Tatra banka
Slovenia NLB Group
South Africa First National Bank and Rand Merchant Bank
South Korea KEB Hana
Spain BBVA
Sweden Swedbank
Switzerland Credit Suisse
Taiwan CTBC Bank
Thailand Bangkok Bank
Togo Atlantic Bank
Trinidad & Tobago Republic Bank
Tunisia Banque Internationale Arabe de Tunise
Turkey Akbank
Turks & Caicos CIBC FirstCaribbean International Bank
Uganda Stanbic Bank Uganda
Ukraine Raiffeisen Bank Aval
United Arab Emirates Emirates NBD
United Kingdom HSBC
United States Citi
United States BNY Mellon (Honorable Mention)
Uruguay Citi
US Virgin Islands Scotiabank
Venezuela Mercantil Banco Universal
Vietnam VietinBank
Zambia Barclays Bank Zambia

Methodology

Global Financeselects the World’s Best Foreign Exchange Providers based on objective factors including transaction volume, market share, competitive pricing, and global coverage, as detailed in public company documents and media reports.

Our criteria also include subjective factors such as customer service and technological innovation, drawing on input from industry analysts, surveys, corporate executives, and technology experts. Decisions are also informed by provider submissions


GLOBAL WINNERS

BEST GLOBAL FOREIGN EXCHANGE BANK

Industrial and Commercial Bank of China


Excellence in foreign-exchange (FX) banking requires excellent platforms and products, outstanding people and global reach. Citi trades more than 140 currencies from FX desks in 83 countries and has the broadest range of clients of any FX bank. Its Citi Velocity platform is fast and easy to use and has been awarded 11 patents. Another Citi platform allows corporate clients to track cash flow and balance-sheet exposure in various currencies across their worldwide subsidiaries, while Citi’s in-house systems help manage the documentation required for FX transactions in many emerging markets.

BEST FX PROVIDER FOR CORPORATES

Societe Generale

Societe Generale offers corporate solutions aimed at improving management of FX and commodity risks. One of the most popular is a structured product leveraging the bank’s expertise in cash FX, derivatives and indices; another is a cross-asset platform, One Corp, which analyzes and designs solutions benchmarked against the client’s key competitors. SG also delivers widely praised currency-hedging solutions. MyHedge, a digital interface with the bank’s proprietary risk systems, helps clients track and monitor the efficiency of their hedges. The bank also has a sector focus for risk advisory connected to its corporate-finance expertise.

BEST FX PROVIDER FOR EMERGING MARKETS CURRENCIES

Standard Chartered Bank

Standard Chartered Bank is a leader in emerging-market, illiquid and restricted currencies. The bank has FX experts positioned in 39 countries, actively trades more than 100 currencies and receives high marks in customer satisfaction. Standard Chartered leads in the introduction of onshore and offshore FX-option products in Asia, Africa and the Middle East, and is also active in Latin America and Eastern Europe. The bank’s cross-currency savvy has distinguished it as the go-to financier for China’s Belt and Road Initiative; last year it was involved in more than 50 Chinese outbound deals around the world linked to Belt and Road.

BEST LIQUIDITY PROVIDER

State Street

Liquidity risk is a major concern of executives in the investment industry. While this creates opportunities for new nonbank providers to enter the marketplace, one competitor that has steadily increased its role in recent years is hardly a newcomer. State Street is a leading provider of financial services to institutional investors, operating in more than 100 markets with $33.9 trillion in assets under management. Its FX Connect is a leading multidealer platform, helping streamline global operations across multiple portfolios and providing access to liquidity from more than 65 providers in more than 140 currencies. State Street’s other FX platform, Currenex, a comprehensive trading solution for corporate treasurers, provides high-performance technology and access to disclosed and undisclosed liquidity together on a single screen.

REGIONAL WINNERS

NORTH AMERICA

Citi

Citi continues to maintain a strong share of the highly competitive North American market. Its leading-edge platforms use the latest technology to provide quick, accurate and competitive pricing; and its vast global scope enables it to deliver a wide range of market-leading FX products and services. Citi has evolved with the market and regulatory landscape, improving productivity and efficiency. On the web and through mobile and trading applications, clients can find Citi research, commentary, and proprietary data and analytics, execute fast FX trades and access the bank’s sophisticated post-trade analysis tools.

LATIN AMERICA

BBVA

BBVA is a leading foreign-exchange bank in Spain and Latin America, where it has trading desks in Mexico, Colombia, Peru, Chile and Argentina. BBVA has banking operations in many emerging markets, including some outside Latin America, and connects FX activity in those regions with major distribution hubs including London and New York. BBVA provides coverage of all key currencies in both simple and structured products, and clients value these along with the bank’s tailored solutions and deep knowledge of local markets.

WESTERN EUROPE

HSBC

HSBC is a leading FX market maker with a global footprint and special expertise in Western Europe, competing both on price and on FX risk analysis and research. In the past year, the bank has separated its foreign-exchange and commodities businesses from its global-markets corporate businesses. Its Evolve platform, which serves 6,000 clients in 35 countries, allows corporate treasurers to view FX exposures and hedges across their business and provides customizable user tools with a wide range of optional features.

CENTRAL & EASTERN EUROPE

Societe Generale

Societe Generale is present in 14 CEE countries, where its FX volumes have grown rapidly in the past year. The bank provides full FX-product capabilities in the five largest markets: Russia (where it owns Rosbank), Poland, the Czech Republic, Romania and Hungary. Altogether, SG maintains 2,500 branches in the region. Its FX solutions give corporate clients the ability to manage both day-to-day operations and adapt to changes they may face in their sector.

ASIA-PACIFIC

DBS Bank

Singapore-based DBS Bank is a major interbank market participant in China and other key Asian markets, including South Korea, Taiwan, India and Indonesia. Thanks to its leading market position and extensive network, DBS offers one of the most competitive pricings in Singapore dollar-related crosses. Its DealOnline platform offers more than 40 currency pairings in spots, forwards, swaps and Asian nondeliverable forwards. DBS also provides a corporate multicurrency account for small to medium-size enterprises. Its Corporate Multi-Currency Account helps small businesses transact and manage up to 13 currencies in separate e-wallets in a single account.

Societe Generale

Societe Generale is present in 14 CEE countries, where its FX volumes have grown rapidly in the past year. The bank provides full FX-product capabilities in the five largest markets: Russia (where it owns Rosbank), Poland, the Czech Republic, Romania and Hungary. Altogether, SG maintains 2,500 branches in the region. Its FX solutions give corporate clients the ability to manage both day-to-day operations and adapt to changes they may face in their sector.

ASIA-PACIFIC

DBS Bank

Singapore-based DBS Bank is a major interbank market participant in China and other key Asian markets, including South Korea, Taiwan, India and Indonesia. Thanks to its leading market position and extensive network, DBS offers one of the most competitive pricings in Singapore dollar-related crosses. Its DealOnline platform offers more than 40 currency pairings in spots, forwards, swaps and Asian nondeliverable forwards. DBS also provides a corporate multicurrency account for small to medium-size enterprises. Its Corporate Multi-Currency Account helps small businesses transact and manage up to 13 currencies in separate e-wallets in a single account.

BEST FOREIGN EXCHANGE RESEARCH & ANALYSIS

FX RESEARCH

BNY Mellon

Research is a crucial element of BNY Mellon’s revamped FX capabilities. Relaunched as The Aerial View, the bank’s FX research is based on a top-down macroeconomic approach that assists clients in identifying and predicting themes underpinning price moves in the world’s capital markets. Supplementing it is BNY Mellon’s proprietary iFlow data, which provides perspective on capital allocation across international financial markets and asset classes. The data is based on fund flows drawn from BNY Mellon’s more than $33 trillion in assets under custody or administration.

FUNDAMENTAL ANALYSIS

BNP Paribas

Paris-based BNP Paribas has an onshore presence in 80 countries. Its GlobalMarkets portal offers access to the bank’s full range of information, research and analysis, including the latest market intelligence and trading ideas from its analysts, strategists and economists. Desktop alerts appear when newly published research meets preselected criteria. GlobalMarkets is integrated into Cortex, the bank’s global FX platform for cross-asset trading tools and services.

TECHNICAL ANALYSIS

Goldman Sachs

Goldman Sachs is King of the Hill in technical analysis, which relies heavily on Elliott wave analysis. Market cycles and trends are identified based on highs and lows in prices and related investor psychology. Goldman notifies currency traders of the next level to watch for and whether or not the market is entering a corrective phase or a powerful “fifth wave.”

FORECASTS

CIBC Capital Markets

CIBC has been one of the most successful forecasters for Group-of-10 currencies in recent years. The Canadian bank relies on a mix of macroeconomic fundamentals and analysis of political risks to produce its prognostications. CIBC’s products range from basic FX to customized hedging and risk-management strategies. The bank also offers 24-hour liquidity in G-30 and selected emerging-market currencies.

BEST BANK FX TRADING TECHNOLOGY AWARDS

BEST BANK PLATFORM (OVERALL)

Citi Velocity

Citi Velocity, the recipient of 11 patents, is this year’s winner based on its design, usability and advanced navigational features that help a busy FX trader keep track of a wealth of trades and market information simultaneously. An analysis dashboard provides key client information and analytics alongside trading status. Citi Velocity Mobile offers tradable pricing for $100 million in currency transactions, including forward and futures orders, from the customer’s mobile phone.

The platform offers cross-asset access to equities, rates, credit, commodities, securitized municipals and research, along with emerging-market currencies. Various asset classes are grouped together on a single desktop; trading is simple, fast and seamless; and velocity is measured in milliseconds.

MOST INNOVATIVE BANK PLATFORM

Shinhan SOL

Shinhan SOL lets Shinhan Bank customers freely exchange 43 currencies at a preferred rate. The South Korean bank created the mobile platform by combining six bank apps into one, with a focus on customer experience and convenience. A remittance service offered through SOL is its most competitive feature. Advanced algorithms reduce the time and cost of remittances while complying fully with international regulations; customers simply choose the currency, amount and destination.

BEST PLATFORM FOR CORPORATIONS

Sberbank Markets

Sberbank Markets, developed by Sberbank of Russia, offers clients quick access to foreign-exchange products. The self-service FX trading platform provides currency conversion, FX swaps, FX forwards and deposits. Its centralized pricing core is connected to the Moscow Exchange and a number of international liquidity providers. Sberbank Markets aggregates the liquidity of Sberbank with the liquidity from the external markets and delivers real-time streaming pricing across 30 currency pairs for spot trading and derivatives, enabling the bank to handle large transactions with low market impact.

BEST EXECUTION ALGORITHMS

Societe Generale

An algorithm is a set of “if, then” rules enabling a computer to complete a predefined task without human intervention. Algorithmic execution strategies aim to meet an objective with each transaction, such as reduced market impact or speed of execution. Societe Generale’s FX algorithmic execution tool allows customers to trade directly in the market anonymously, through sophisticated order routing, to numerous diverse liquidity pools.

BEST TRANSACTION COST ANALYSIS

BNP Paribas

Meeting best-execution requirements is a critical component of the investor-protection standards under the EU’s Markets in Financial Instruments Directive (MiFID). In the search for best execution, currency traders need to be able to understand the performance of each venue and the impact of routing behavior, not just find the lowest price. BNP Paribas partnered with BestX, a London-based fintech company and specialist provider in FX transaction-cost analysis, to allow its clients to judge the quality of their currency-trade execution against a variety of benchmarks. BestX provides a level, standardized playing field across which clients can assess and compare the quality of execution they receive.

BEST BIG-PICTURE VIEW OF POSITIONS

Citi Velocity Command Centre

Command Centre is designed to provide clients with visibility of, and control over, their traders’ access to Citi Velocity. Clients can view firmwide accounts and net open position limits. Trading permission can be varied for different products, such as forwards and nondeliverable options. Electronic and desk-watched orders left with Citi through any e-channel are visible based on need-to-know principles and sorted by proximity to market.

The platform also helps keep clients informed and their skills sharp: An FX Overview page delivers research, market commentary and technical analysis most relevant to the client side by side with the trading display.

BEST END-TO-END PROCESSING

J.P. Morgan’s Execute

Execute, on J.P. Morgan Markets, lets users trade a breadth of orders across 300-plus currency pairs, leveraging the bank’s diverse order flows and intelligent order routing with direct access to spot trading on 14 electronic communication networks. The platform covers trading of currencies, commodities and interest-rate products.

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