For a second year running, Barclays has demonstrated its strength in the rates business by taking top place in the EuroMoney 2013 Global Rates Survey.
Whilst a number of banks continue to scale back their FICC activities on the back of tougher regulation from Dodd Frank and higher Basel III capital requirements, banks like Barclays are continuing to invest in their e-trading, portfolio pricing models, and clearing capabilities.
However, given the reduced appetite to warehouse large long-term inventory positions, a successful rates business must include a strong and diverse client distribution franchise, to enable the ‘recycling’ rather than warehousing of risk.
Barclays etrading platform BARX, handles about 50% by volume and 90% by tickets of their trading in liquid cash government bonds. Although, in OTC derivatives only 5-10% of client flow is currently executed electronically, although they are looking to increase that to around 50%.
Top five bank ranks here (and last years position in brackets)
1st: Barclays 17.13% (1st)
2nd: Deutsche 10.92% (2nd)
3rd. RBS 8.85% (3rd)
4th: JP Morgan 7.72% (7th)
5th: HSBC: 7.36% (4th)
Euromoney Rates Survey here