Exotic FX pulse set to race

Foreign exchange exotic products are seeing a huge global surge in demand, and in response banks are reconfiguring their sales and trading efforts.

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Banks around the world are gearing up for what they predict will be a sharp increase in the exotic foreign exchange options business. Although demand in Europe seems to be growing most dramatically for second-generation exotics, firms are projecting that both companies and asset management clients will be increasing their use of first-generation exotics in Asia, emerging Europe and Latin America.

A number of trends are driving demand for these products. To begin with, asset managers in

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