UBS joins JP Morgan and Morgan Stanley on the sidelines, citing ‘time and effort involved is disproportionate’
Another major bank has joined the ranks of JP Morgan and Morgan Stanley to sit out from the annual survey by the Euromoney Magazine’s annual poll for best FX dealing bank. The Wall Street Journal reports that the Swiss bank has announced that this is the last year in which it is participating in the survey. It pulled out from the race as UBS considered the efforts put in by the bank and its clients into the poll to be of questionable value.
In a note obtained by the Wall Street Journal, the bank is addressing its clients and states that despite being an active participant for many years in Euromoney’s survey which represents one of the industry’s benchmarks for FX volumes, this was the last year in which UBS participates. The bank proceeds to explain that Euromoney has started contacting clients directly in realtion to the survey in an effort to increased participation rates, and hence accuracy and credibility.
According to the note the amount of time that is committed to the participation by the clients of the bank and itself does not justify the benefits that are obtained from participating in the poll.
Or maybe this could be some guilty conscience speaking on part of the bank’s foreign exchange dealers, or more likely executives? Why do they have to bother their clients to participate in some survey as it is becoming ever more likely that UBS was one of the banks that was conspiring with other banks in manipulating foreign exchange fixes?
For a link to the piece in the Wall Street Journal’s blog click here.