Methodology

The Euromoney FX Survey 2017 is our 39th annual survey of liquidity consumption in the global FX markets.

Euromoney’s FX survey continues to be the most comprehensive representation of the wholesale FX consumption universe, a representative sample of FX consumption volumes. It is the most accurate depiction of market shares for FX providers in aggregate.

We made changes to the qualitative portion of the questionnaire this year to make it simpler and easier for clients to fill in. Instead of completing up to 20 pages of ratings for their counterparties, there is a single section asking clients to rank up to seven of their counterparties on qualitative aspects of their service. We also cut the number of categories in the qualitative section.

The volumes portion of the questionnaire remains the same as in previous years.

The survey was conducted between January 19 and March 3, 2017.

In total, we received 2,395 valid responses from consumers of FX liquidity, representing total FX consumption of $92.9 trillion in the calendar year 2016.

The survey is split into three parts. For the quantitative sections, respondents are asked to name their (up to) top 20 dealers by volume – in dollars – and the volume they traded with these providers in 2016.

Respondents are asked to split their volumes between the three main product groups: spot/forward outright; swaps (single leg); and options (notional value).

Respondents are then asked to split these volumes on a percentage basis by consumption channel (voice versus electronic) and to provide the percentage of their total FX trading volume for 2016 that was in emerging market currencies (where one currency of the pair is an EM currency).

Clients can vote for bank and/or for non-bank liquidity providers.

Each provider’s volume aggregated across all respondents (for example, the total volume of transactions attributed to hypothetical XYZ bank across all responses) is summed up and expressed as a percentage of the total transaction volume represented by all valid responses to arrive at their all-FX products, overall market share.

All other market-share calculations are arrived at by summing up each provider’s aggregated volume across a particular client type, client geography, product type or consumption channel.

The second section of the survey is qualitative and produces rankings of various aspects of the FX providers’ services. Respondents are asked to rank their providers on a variety of customer service metrics, product areas and ancillary services. These votes are weighted to produce a ranking.

Votes in the qualitative category for an institution that a client has not nominated in the volumes portion are discarded from the qualitative ranking.

The third part is the editorial section: we invite clients to answer questions about their use of FX and their views on key issues affecting the markets.

We used the following definitions to split volumes

Non-swap volume: Incorporating spot and forward outrights.

Swap volume: Incorporating swap/forward roll volumes and only counting one leg of each swap transaction.

Options volume: Vanilla options volumes on a notional basis (when the market share tables are calculated we used a delta-equivalent reduction on the notional volumes. Banks were asked to give a delta figure for corporates and financial institutions. Euromoney averaged these figures to give a uniform delta value for the notional volumes for corporates and financial institutions).

Cross-currency swaps of duration greater than one year and rates products as a whole are not part of this volume.

Swaps are single-leg counted. Outrights such as long-dated forwards are included in the survey regardless of maturity.