Diverging monetary policies are creating ideal conditions for banks to make money from trading currencies, as Credit Suisse Group AG to Goldman Sachs Group Inc. say rising volatility is boosting earnings.
“If there's higher volatility, there's higher volume and higher opportunities for us to generate revenue,” Bernie Sinniah, the London-based global head of corporate foreign-exchange sales at Citigroup Inc., the second-biggest currency trader, said in a phone interview.
Volumes in the biggest financial market jumped to a record $5.7 trillion a day in June, according to the latest data from CLS Bank, which operates the world's largest foreign-exchange settlement system. Deutsche Bank AG and Barclays Plc, which had the highest revenue from currency trading in 2012, published results today, while HSBC Holdings Plc reports in the next week.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
