US foreign exchange dealers revise operational risk standards

The revised document says determination of option in-the-moneyness and the subsequent notification of counterparties should be performed by an auditable electronic system. The document goes on to say that exercising options should be “segregated from sales and trading and performed by staff that liaise between the front- and back-office personnel". The document also states that “systems should be designed to auto-exercise in-the-money transactions”.

The Foreign Exchange Committee was formed in 1978 to spread forex industry best practices to reduce costs and improve risk management. Though the New York Federal Reserve Bank sponsors the committee, it has no enforcement powers.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: