Deutsche Bank creates a new ‘Markets Electronic Trading’ unit to focus on ‘electronic execution platforms across fixed income asset classes. Zar Amrolia, Global Head of FX will also become Head of the new markets electronic trading unit.
The driver behind the new unit being regulation, automation and increased standardisation in fixed-income markets.
Being Deutsche, their ambitions for the new unit are according to Zar simple enough;
To create a market-leading electronic execution platforms that position Deutsche Bank as the leading provider of fixed-income trading solutions in terms of ‘client experience’ market share and profitability…
I am sure we will see many new and innovative offerings from the new unit, including SEF Aggregation, and Smart order Routing Services, and closer integration with Deutsche’s Prime Services offerings, as clients move towards central clearing for more standardised products, as outlined in Caplin’s recent white paper ‘Single Dealer Platforms in a Cleared World‘
However, Deutsche knows more than any other bank what it takes in terms on investment and commitment to become and then to maintain a market leading position, having held pole position in the EuroMoney FX rankings since 2005.
Although, as we have mentioned many times before, and as the tables below show, whilst Deutsche has maintained a market leading position in FX, their actual market share has fallen steadily over that time, as other banks up their game in eFX.
Indeed, according to a recent Greenwich FX survey, BarCap has overtaken Deutsche in FX market share.
Coverage in FX Week here