Differing approaches from the biggest players

Conversely UBS's surprise move out of London, revealed last week, shows that it is confident that not having a global trading footprint won't damage its forex franchise across the globe. These two decisions point to very different approaches to attracting business.

UBS has a strong global sales network that delivers strong, steady, relationship-based business. Deutsche, meanwhile, is more dependent on its renowned e-trading platform Autobahn and its trading prowess. The bank is looking to build its global presence with people on the ground in markets from which it previously pulled back. This makes sense for a bank that seeks to build as much profitable business as possible.

UBS's decision to quit London on the surface seems to make less sense. Being at the heart of the global capital of forex obviously has the benefit of being close to the headquarters of some of the biggest clients and the lion's share of FX volumes.

It is possible that relationships with players in the world's biggest market will be affected. Holding onto clients where direct contact with traders is more distant will be a challenge.

It is likely that at least some talent will be unwilling to move to Zurich, making unsettling personnel changes inevitable. It will also make life more difficult for sales staff in London who have to pick up the phone to talk to traders rather than speaking across the desk.

However, the UBS decision does have merit beyond merely saving some cash. The claim from the Swiss bank that the move was made to bring together the bulk of technology, trading, front office and support staff does hold water.

Having senior management close to these functions will enable it to drive through strategic decisions more easily.

On balance, it is Deutsche's positive decision to return to a key market that looks more likely to bring long-term dividends. Its rivals would be foolish, however, to write off perhaps the most effective marketing operation in the business. Other banks will continue to have a tough time knocking these two giants off the top spots.