Deutsche tops FX industry poll, but Citi closing in

* Deutsche leads survey for 9th straight year * Citi sees largest jump in market share among top 10 * Top 5 banks account for 57 pct of market share * BAML replaces Goldman Sachs in top 10 By Anooja Debnath LONDON, May 8 (Reuters) - Deutsche Bank had the biggestshare of the foreign exchange market for the ninth year runningbut second-ranked Citi significantly narrowed the gap, aEuromoney poll showed on Wednesday. The 2013 annual survey was the second closest on record,with just 0.28 percentage points separating the top two banks. Deutsche accounted for 15.18 percent of the $5trillion a day FX market, up from last year's 14.57 percent butway off its peak in 2008 when its share was 21.7 percent. Citi saw the largest spike in its market share amongthe top 10, jumping to 14.90 percent from 12.26 percent. Citi's global head of G10 foreign exchange, Jeff Feig, saidthe launch of the Velocity 2.0 trading platform had contributedto the increased share. "We added approximately as many users in the last quarter ofthe year as we did in the first three (quarters). The dealing inVelocity 2.0 sky-rocketed and the market share went up." Deutsche was top in electronic and options trading while Citi led the rankings in spot and emerging market trading. Barclays came in third in the overall survey with10.24 percent, followed by UBS on 10.11 percent. Of the top 10 banks only Deutsche, Citi and HSBC increased their market share, while Credit Suisse andBarclays suffered the steepest drops. The only change in ranking was Bank of America-Merrill Lynch replacing Goldman Sachs in 10th spot. The top five hold 57 percent of the FX market, up from 55percent last year, as banks with deeper pockets seized marketshare from smaller players. "In an overall environment where margins are declining, youneed greater access to liquidity in order to transact and biggerinstitutions have that," Citi's Feig said, adding it was alsonecessary to keep investing in new technology. Although volumes have held up in 2013, increased trading inthe yen after aggressive monetary easing in Japan has beenoffset by relatively quiet trading in euro/dollar. "This is turning into a slightly tricky year as volatilityis not that high," said Kevin Rodgers, global head of foreignexchange at Deutsche Bank. The poll reflected responses from 16,298 of the banks'clients and was conducted over six weeks in January andFebruary. Overall - 2013 Overall 2012----------------------------- ----------------------- Rank Bank Market Bank Market Share Share1 Deutsche Bank 15.18% Deutsche Bank 14.57% 2 Citi 14.90% Citi 12.26% 3 Barclays 10.24% Barclays 10.95% 4 UBS 10.11% UBS 10.48% 5 HSBC 6.93% HSBC 6.72% 6 J.P. Morgan 6.07% J.P. Morgan 6.60% 7 RBS 5.62% RBS 5.86% 8 Credit Suisse 3.70% Credit Suisse 4.68% 9 Morgan Stanley 3.15% Morgan Stanley 3.52% 10 BAML 3.08% Goldman Sachs 3.12% ------------------------------------------------------------