Dealer Rankings 2022: Fluid Dynamics

Fluid dynamics 2 26 May 2022
Banks and end-users have faced a rapid rise in rates in 2022. In this environment, who topped the Premier League and who got relegated?

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The results of the dealer rankings poll and the associated feature are protected under copyright laws. Reproduction of the feature and/or the poll results, for either internal or external distribution, is strictly prohibited without the prior written permission of Total Derivatives.


For information on reprints of the rankings, and permission to reproduce the results in any form, please contact or call +44 (0)20 7779 8556.


Dealer Rankings 2022: Fluid dynamics

Most banks came out of the pandemic in surprisingly good shape, judging by their recent results. However, the range of performance reported by FICC and/or rates businesses was probably more variable than usual across dealers, against a backdrop of rising rates, accelerating inflation and increasingly hawkish central banks.


This spread of performance was arguably reflected in the latest Total Derivatives Dealer Rankings. Except perhaps in interest rate swaps, first and second places proved to be fluid and were not always occupied by the same names as last year. Respondents commented that for some products such as inflation, banks that managed to keep a stable, experienced team in place, had an advantage over desks with more churn and personnel change.       


The latter was also cited as a factor in the market illiquidity that was mentioned frequently to Total Derivatives by traders across products and currencies over the last few months, and confirmed by bank research flagging some persistent pricing anomalies even in the most liquid areas of rates. Lack of market depth combined with fear of tape bombs - either from the war, random corporate earnings announcements or hawkish central bankers breaking free of the pack - all added to dealers’ nervousness about warehousing risk for any longer than strictly necessary. 


More positively, last year’s Dealer Rankings included questions about the transition to SOFR. With a few notable exceptions, market participants and regulators generally seemed happy about the move to SOFR in swaps and cross-currency basis. The focus is now on non-linear OTC and exchange-traded products with CME announcing SOFR First for options this month. Ahead, as volumes in SOFR options start to rise above volume in Eurodollars, the CCPs are beginning to announce their plans for USD LIBOR’s funeral in 2023, after which the focus must eventually turn to transitioning away from EURIBOR.


The results of the Dealer Rankings

First place across interest rate derivative products in the Dealer Rankings went to JP Morgan again in 2022 but there were changes among the other positions in the top five. Barclays rose to global second place, Citigroup fell to third and Goldman Sachs leapt into fourth position, just ahead of Deutsche Bank in fifth. BNP Paribas and BofA both slipped out of the global top five but maintained high rankings in the markets for euro swaps and dollar swaps, respectively.


By currency, also JP Morgan kept the top slot for USD interest rate derivatives. Citigroup retained second place and Bank of America was third. JP Morgan also stayed in first place for EUR derivatives,  BNP Paribas remained second and Deutsche Bank rose to third. Barclays maintained its lead in GBP derivatives, ahead of NatWest Markets in second. JP Morgan kept third in GBP derivatives, followed by Goldman Sachs and BofA. Mizuho was first in JPY derivatives, ahead of Mitsubishi UFJ. 


Across rates products, Barclays grabbed back the first place in global inflation, while Citigroup remained second and Goldman Sachs climbed to third. JP Morgan stayed top in global options ahead of Barclays in second, while Goldman Sachs rose to third. Morgan Stanley just kept first place for interest rate structured MTNs, with JP Morgan up to second while BofA rose to third.


Looking by market and product, JP Morgan kept its lock on first place for USD IRS trading for both the 2-10 year and 10-50 year buckets. BofA rose to second and Citigroup fell to third. Citadel Securities stayed in the rankings for a second year with a fifth place for USD 2-10 year IRS, just behind Morgan Stanley in fourth.


Morgan Stanley rose to take first place in USD options as JP Morgan slipped to second ahead of Goldman Sachs in third. JP Morgan retained the top slot for USD inflation products ahead of Citigroup and BofA. Dollar structured MTNs were led by Morgan Stanley followed by JP Morgan, with Goldman Sachs third and BofA fourth.


In EUR IRS, BNP Paribas held on to first place for 2-10 year and 10-50 year swaps for a second year, keeping JP Morgan in second place for 2-10 year swaps and Deutsche Bank for 10-50 year. Deutsche Bank was also third for EUR 2-10 year and Barclays was fourth. In 10-50y swaps JP Morgan was third and Goldman Sachs fourth.


In EUR options trading, JP Morgan was first again but BNP Paribas climbed another rung to move up to second place from third. Barclays was third and Goldman Sachs fourth.


Barclays rose back to take first place for EUR inflation, ahead of Deutsche Bank, BNP Paribas and JP Morgan. JP Morgan took first place for EUR structured MTNs from Morgan Stanley in second, Citigroup in third and Credit Agricole in fourth.


JP Morgan stayed top for EUR/USD cross-currency basis for the sixth year in a row, followed by Citigroup.


In GBP interest rate swaps, NatWest Markets stayed top for 10-50 year swaps while Barclays kept first place for the 2-10 year bucket. Barclays also remained first for both GBP options and GBP inflation, while NatWest stayed second for options and JP Morgan rose to third. Goldman Sachs climbed to second for GBP inflation and NatWest Markets was placed third.


Finally, JPY swaps and options saw Mitsubishi UFJ, Mizuho and Nomura fight for most of the top three places, with Mitsubishi UFJ placed first in 2-10y and Mizuho in 10-50y swaps.


All interest rate derivatives 1 JPMorgan 17.3%
  2 Barclays 9.1%
  3 Citigroup 8.5%
  4 Goldman Sachs 7.9%
  5 Deutsche Bank 7.5%
USD 2-10y IRS 1 JPMorgan 28.9%
  2 BofA 13.3%
  3 Citigroup 12.6%
  4 Morgan Stanley 7.1%
  5 Citadel Securities 6.1%
USD 10-50y IRS 1 JPMorgan 28.9%
  2 BofA 14.2%
  3 Citigroup 13.0%
  4 Goldman Sachs 9.3%
  5 Deutsche Bank 6.5%
USD interest rate options 1 Morgan Stanley 15.1%
  2 JPMorgan 14.5%
  3 Goldman Sachs 12.3%
  3 Citigroup 9.5%
  5 Deutsche Bank 8.9%
USD inflation derivatives and cash 1 JPMorgan 18.2%
  2 Citigroup 16.2%
  3 BofA 14.1%
  3 Goldman Sachs 14.1%
  5 Barclays 7.1%
USD interest rate structured notes 1 Morgan Stanley 21.7%
  2 JPMorgan 17.4%
  3 Goldman Sachs 13.0%
  4 BofA 9.8%
  5 Citigroup 8.7%
EUR 2-10y IRS 1 BNP Paribas 19.8%
  2 JPMorgan 15.7%
  3 Deutsche Bank 13.7%
  4 Barclays 10.2%
  5 Goldman Sachs 7.1%
EUR 10-50y IRS 1 BNP Paribas 19.6%
  2 Deutsche Bank 16.2%
  3 JPMorgan 14.0%
  4 Goldman Sachs 11.7%
  5 Barclays 10.1%
EUR interest rate options 1 JPMorgan 16.5%
  2 BNP Paribas 15.7%
  3 Barclays 11.0%
  4 Goldman Sachs 9.4%
  5 BofA 6.3%
EUR/USD cross currency basis 1 JPMorgan 18.8%
  2 Citigroup 11.4%
  3 Credit Agricole 11.4%
  4 Deutsche Bank 10.8%
  5 Barclays 8.0%
EUR inflation cash and derivatives 1 Barclays 16.8%
  2 Deutsche Bank 14.7%
  3 BNP Paribas 12.6%
  3 JPMorgan 12.6%
  5 Citigroup 9.5%
EUR interest rate structured notes 1 JPMorgan 15.7%
  2 Morgan Stanley 12.4%
  3 Citigroup 12.4%
  4 Credit Agricole 10.1%
  5 BNP Paribas 9.0%
JPY 2-10y IRS 1 Mitsubishi UFJ 20.4%
  2 Mizuho 14.3%
  3 JPMorgan 14.3%
  4 Nomura 12.2%
  5 Sumitomo Mitsui 8.2%
JPY 10-50y IRS 1 Mizuho 21.2%
  2 Mitsubishi UFJ 19.2%
  3 Nomura 9.6%
  3 JPMorgan 9.6%
  5 Sumitomo Mitsui 7.7%
JPY interest rate options 1 Mizuho 23.2%
  2 Mitsubishi UFJ 14.3%
  3 Sumitomo Mitsui 12.5%
  3 JPMorgan 12.5%
  5 Nomura 8.9%
JPY inflation derivatives and cash 1 Mizuho 25.0%
  2 Mitsubishi UFJ 18.2%
  3 Goldman Sachs 11.4%
  4 Nomura 9.1%
  5 Sumitomo Mitsui 6.8%
GBP 2-10y IRS 1 Barclays 26.6%
  2 NatWest Markets 19.1%
  3 JPMorgan 10.6%
  4 BofA 9.6%
  5 Goldman Sachs 8.5%
GBP 10-50y IRS 1 NatWest Markets 24.7%
  2 Barclays 20.0%
  3 JPMorgan 10.6%
  4 BofA 9.4%
  5 Deutsche Bank 7.1%
GBP interest rate options 1 Barclays 30.7%
  2 NatWest Markets 18.2%
  2 JPMorgan 10.2%
  3 Deutsche Bank 9.1%
  4 Goldman Sachs 5.7%
GBP inflation derivatives and cash 1 Barclays 22.6%
  2 Goldman Sachs 16.1%
  3 NatWest Markets 14.5%
  4 BofA 11.3%
  4 HSBC 11.3%
All USD interest rate derivatives 1 JPMorgan 22.6%
  2 Citigroup 11.7%
  3 BofA 11.6%
  4 Goldman Sachs 9.1%
  5 Morgan Stanley 8.7%
All EUR interest rate derivatives 1 JPMorgan 14.6%
  2 BNP Paribas 13.5%
  3 Deutsche Bank 10.9%
  4 Societe Generale 10.3%
  5 Barclays 9.4%
All JPY interest rate derivatives 1 Mizuho 20.2%
  2 Mitsubishi UFJ 17.3%
  3 Nomura 10.1%
  4 JPMorgan 9.6%
  5 Sumitomo Mitsui 8.7%
All GBP interest rate derivatives 1 Barclays 24.8%
  2 NatWest Markets 19.1%
  3 JPMorgan 8.7%
  4 BofA 7.5%
  4 Goldman Sachs 7.5%
All IRS 1 JPMorgan 26.0%
  2 Barclays 11.0%
  3 Deutsche Bank 10.9%
  4 BofA 10.8%
  5 Citigroup 10.6%
All interest rate options 1 JPMorgan 13.6%
  2 Barclays 10.4%
  3 Goldman Sachs 9.5%
  4 Morgan Stanley 7.8%
  5 Deutsche Bank 6.7%
All inflation 1 Barclays 12.3%
  2 Citigroup 10.7%
  3 Goldman Sachs 10.4%
  4 JPMorgan 9.8%
  5 BofA 4.9%
All interest rate structured notes 1 Morgan Stanley 16.8%
  2 JPMorgan 16.3%
  3 BofA 10.9%
  4 Citigroup 10.3%
  5 Goldman Sachs 8.7%


The methodology

Total Derivatives’ rankings are the most comprehensive peer review of dealers’ performance in interest rate derivatives trading. There were around 400 individual responses to the latest rankings, registering a total of almost 1,200 votes. Experienced professionals involved in trading, sales and marketing, structuring and strategy at investment banks formed the largest group of respondents, with portfolio managers at asset managers and hedge funds also taking part. Voting took place in April and May 2022.


To recap, respondents were asked to rank the top three dealers (other than their own institution) based on reliability of market-making, keenness of pricing, depth of liquidity provision, speed of execution, access to e-trading platforms, efficiency of post-trade processing and product innovation.


Market-makers were ranked in dollars, euro, yen and sterling. Product categories include two year to 10-year interest rate swaps, 10-year to 50-year interest rate swaps, inflation (cash and derivatives), interest rate options, EUR/USD cross-currency basis swaps and interest rate structured MTNs in USD and EUR.


For information on reprints of the rankings, and permission to reproduce the results in any form, please contact or call +44 (0)20 7779 8556.