Foreign exchange

Calculating transfer risk using Monte Carlo

Marco van der Burgt constructs a model of emerging market transfer risk based on a country’s foreign exchange reserves that is combined with facility-dependent risk factors that determine counterparty exposure in the event of a moratorium. He then…

FSA warns of treasury management flaws

LONDON - The Financial Services Authority, the UK regulatory body, has highlighted key areas of weakness in UK treasury management following a survey of banks and building societies.

Philippines SEC drafts FX reporting guidelines

PHILIPPINES - The Philippines' Securities and Exchange Commission (SEC) last week announced draft guidelines on the preparation of foreign currency-denominated financial statements for corporations in the country.

Basel may advise banks on outsourcing

The Basel Committee on Banking Supervision may investigate the risks associated with outsourcing trading systems to third parties, a senior Bank for International Settlement (BIS) official told FX Week.

Banks counter IAS39 threat

Banks are developing new structuring models for corporate clients to ensure the IAS39 accounting standards do not result in a reduction of complex foreign exchange hedging activity, Risk's sister publication FXWeek reports.

Extreme forex moves

What is the appropriate statistical description of tail risk in a market portfolio? In the context offoreign exchange, Peter Blum and Michel Dacorogna address this problem using extreme valuetheory. Using 20 years of data, they estimate parameters for an…

Integral awarded patent for Web technology

Californian software company Integral Development said it has secured a patent for its Web-based straight-through processing transaction technology. The patent applies to Integral’s Integral Direct FX, Direct Derivatives, AutoDealer and Integral…

FX volatility fuels earnings hope

Banks are expecting to see increased forex trading revenues for the second quarter from increased volatility in the major currencies, officials told RiskNews ’ sister publication FX Week .

Transparency drives FX prop trading changes

Foreign exchange proprietary traders are altering their strategies in response to increased price transparency. They are taking risk across more products, referring more to market strategy and turning to FX derivatives for speculative trading, according…

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