FX Markets

Vanguard, FX forwards kingmaker

When you cut up FX forwards data from US funds, one manager’s name emerges ahead of the rest. Vanguard consistently has the biggest position when all trades are added up. It is also the biggest for G-10 and non-G10 currencies, for shorter-dated trades, and for the largest tickets. This dominance means the firm’s choice of counterparties has a big say in where those banks appear in their own rankings. Over the course of 2020, Vanguard used 19 banks in total, but the amount of business it transacted with each of them fluctuated throughout the year.