Common currency
As equity-linked structured products continue to suffer in the current economic turmoil, foreign exchange is burgeoning as a lucrative asset class for retail investors. But the carry trade has not emerged unscathed from the crisis, so could the future lie in algorithmic indexes? Emma Dunkley reports
Foreign exchange boasts the largest, most liquid financial market in the world, with around $3 trillion traded every day. Over the past few years, forex issuance more than tripled from around $6 billion in 2005 to $20 billion in 2007 and is fast shedding its status as the poor relation of equities as an underlying for structured products. As a diverse market comprising a multitude of participants, open 24 hours a day, with easy market access and high liquidity, forex has a range of attractions
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