Foreign exchange markets started last year where they left off in 2008 – reeling from the collapse of Lehman Brothers. Currency volatility hovered at elevated levels, liquidity in long-dated options on certain currency pairs was scarce, and concerns over counterparty risk remained high on the agenda for both dealers and clients.
End-users say a number of banks pulled back from the market in the fourth quarter of 2008 and into 2009, particularly in options markets. Only a small band of three or f
The week on Risk.net, December 9–15 2017Receive this by email