jump to navigation

Trends in FX July 1, 2009

Posted by newyorkscot in Markets.
Tags: , ,

The 2009 edition of FXAll’sBest Practice in Foreign Exchange Markets” has some great commentary on what has happened to the FX market in last 9 months: reduced volumes, increased volatility, return to high-touch client relationships, and the lack of liquidity in the forward market (see Page 12). Key point: forward trades (swaps,outrights) are essentially loans and hence need to be modeled/priced as such (think: counterparty/settlement risk from a credit perspective).



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: