In the past year, it has delivered index products, such as the Deutsche Bank Currency Returns index, complex structured products like deal-contingent hedges, and run-to-value correlations for hedge funds. “In a commoditised market, the key is differentiating your platform through the breadth of tools and products offered to clients. We are always innovating. You have to understand your clients deeply and be able to create the right services and the right products for them,” says Zar Amrolia, global head of FX.
Prime examples of how Deutsche keeps raising the bar are evident both in client functionality and improved processes in the bank. The former is represented by the unveiling of its DB Marketplace – effectively Deutsche’s internal market, which enables its clients to trade in an exchange-like environment.
Mr Amrolia says that, to drive improved processes, Deutsche is working on a project to enable electronic risk management of FX options. “Ticket volumes in FX options have grown from single digits to hundreds per day and will soon reach thousands per day; and when volumes explode – as they have already done in electronic spot trading – human traders simply cannot risk manage the trades. We are applying the same use of algorithms to the FX option space as we have to spot trading,” he says.
How does Deutsche plan to defend and build its market share? “There are plenty of opportunities to tap into new client bases and to deepen our penetration in regions such as CEEMEA,” he says.
