Options reduced

Dealers report that European corporates have reduced their use of options since the introduction of IAS 39 last year. But with greater volatility in the foreign exchange markets expected in the coming year, are companies sufficiently hedged? Gareth Gore reports


The dollar has more or less encountered one-way traffic over the past year. With the Federal Reserve raising interest rates 14 times from June 2004 – most recently in January, when it raised its benchmark rate a further 25 basis points to 4.5% – the dollar has had a virtually unchecked bull run, strengthening nearly 15% against the yen and more than 12% against the euro over 2005.

But dealers say the direction of the dollar in the coming year could be a little more uncertain. Analysts are more or

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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