South Korean export markets won’t slow
South Korean freight derivatives growth will not slow, despite the financial regulator’s institutional warning to Barclays and a caution to an individual at JP Morgan for breaking local banking rules by selling inappropriate currency derivatives that are used in exporter hedging programmes, say analysts
In an official statement, South Korea's Financial Supervisory Service (FSS) said it had sent an institutional warning to Barclays, which sold currency derivatives to three exporters that harmed those companies. It said Barclays did not employ proper risk control steps for its currency options trades, worth $1.2 billion, with three firms between 2006 and 2007, and failed to fully inform trading counterparts of related risks.
The FSS said an "institutional warning was given only to Barclays’s
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