Citi has introduced a new service that offers a wider view of FX vendors and analysis of the FX sector, targeting clients and FX service providers. Dubbed CitiFX Vendor Review, this resource offers insights and benchmarks for FX vendors and clients.

Connectivity and Governance

This year, Citi's review highlights the importance of connectivity, governance, and customer service, reflecting the industry's dynamic nature and client needs. The 2024 CitiFX Vendor Review, now in its fourth year, offers an in-depth analysis of the FX sector based on a framework and data-driven insights.

“Ultimately, we're trying to achieve improved connectivity Connectivity Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Read this Term, product offering, stability, and market operation. This will benefit our clients, liquidity providers, and all other market participants,” said Ayesa Latif, Citi's Global Head of FX Products. The review evaluates vendors on nine criteria, including functionality, stability, and governance, aiming to help clients navigate the complex FX market.

The review underscores the need for strategic venues and vendor partners to align with client expectations. It provides insights into where improvements are necessary and promises to promote best practices and operational governance. Citi's approach also aims to set a gold standard in the industry for better client services.

A survey of 120 of Citi's most active clients, including banks, corporates, asset managers, and hedge funds, reportedly revealed significant insights. While 87% of clients expressed satisfaction with their primary vendors, 88% had enhancement requests, with over half seeking core area improvements.

Expansion in FX Venues

The expansion of FX venues since the COVID-19 pandemic has reportedly led to customized and integrated solutions for clients. However, the review shows a decline in clients seeking new vendors, from 51% in 2022 to 19% in 2024.

According to the company, this decline points to a potential risk of 'vendor lock-in,' where switching vendors becomes challenging due to the time, cost, and effort involved. The 2024 survey highlighted a focus on improving existing FX management solutions, particularly through workflow automation.

CitiFX Vendor Review roundtable events, which were well-attended in London, are scheduled for Singapore and Hong Kong and are planned to expand to continental Europe. These events offer a platform for industry participants to discuss the review's findings and share best practices.