JP Morgan Dominates Forex Market in 2020

JP Morgan Chase & Co. led other financial firms in the global forex market with a 10.78 percent market share. This was better than the 9.81 percent it held in 2019 before the global pandemic disrupts financial markets and the world’s economy.

UBS trailed JP Morgan with an 8.13 percent market share.

It would be recalled that JP Morgan had predicted low trading liquidity at the beginning of the year, citing the drop in market volatility.

The increase in the firm market share was as a result of the surged in electronic trading during the lockdown of the COVID-19 pandemic and the general increase in implementation of machine learning in the foreign exchange market.

In JP Morgan’s previous report, it had predicted that electronic trading volumes would increase from 74 percent achieved in 2019 to 84 percent in 2020. The projection was before the pandemic, therefore, there is probability that the number of adoption surpassed that projection given the size of disruption in the global economy.

JP Morgan’s global market capital rose over $400 billion this year to lead other banks. This was after it instituted the eFX algorithm.

A recent report showed that the bank market capital hits $433 billion in July 2020. Followed by Bank of America’s $306.7 billion.

While the ICBC came third with $290 billion.