Whipsawing volatility in fixed-income, currencies and commodities markets has spelled a miserable third quarter for most investment banks’ FICC divisions – with the sparkling exception of foreign exchange trading. Results from the three largest foreign exchange houses – Deutsche Bank, Barclays Capital and UBS – suggest market volatility, which has driven away many investors from credit and derivatives, has helped currency trading have an excellent quarter, as clients scrambled to hedge their currency exposure. Nowhere was this better exemplified than at UBS, the third-largest bank in global foreign exchange markets ... (full story)