Morgan Stanley regained its position as the top foreign exchange forwards dealer for US mutual funds in the third quarter, dethroning HSBC on the back of a surge in volumes from Pimco.
Overall, US mutual funds shrunk their positions in FX forwards in Q3, with the market declining by around $37.2 billion, or 4%, according to data from disclosures made to the US Securities and Exchange Commission that have been gathered and analysed by FX Market’s Counterparty Radar service. The overall fall in volumes was driven by G10 currencies, which saw a drop of $30.4 billion.
But despite the shrinking volumes, Morgan Stanley had $106 billion of reported volumes in Q3, up $20.7 billion on the previous quarter – seeing its FX forwards market share jump to 12% from 9% in Q2.
Morgan Stanley is now 3 percentage points clear in market share terms from its nearest rival, as well as…