Royal Bank of Scotland puts new forex strategy on the radar

Royal Bank of Scotland Global Banking and Markets has launched a foreign exchange index offering investors exposure to emerging markets currencies.

The Radar (regression analysis driven alpha return) index uses an automated quant strategy that moves away from the traditional fixed carry trade model. The bank will be offering, among other products, capital-guaranteed notes constructed on the index.

The Radar index allocates long and short positions to 20 different emerging markets currencies. Ten