Winners Take All In Corporate FX Market - Survey
FX relationships are hard won, but the prizes for doing so have increased, according to a study of the institutional and corporate foreign exchange market by research and consultancy firm ClientKnowledge. The 390 European corporations – trading a total of some $300 billion per month – that took part in the study commented that the numbers of FX providers they use had decreased from 7.4 in 2001 to 6.7 in 2002. The survey also reported a 25% increase in the FX volumes European corporations transacted in 2002 compared with 2001. With corporations concentrating their FX transactions on a decreasing number of providers, the report warned that failure to be part of this group will be costly. ‘But there are substantial rewards for those providers that succeed in winning a key FX place,’ ClientKnowledge observed. The study involved interviews with 1559 corporate and institutional transactors of FX, globally.