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New York Fed demands better management of FX risks

Greater use of capital and collateral to mitigate all risks relating to foreign exchange trading is crucial, warns head of financial market infrastructure at the New York Fed

time-money
Jeanmarie Davis, New York Fed

Banks must improve the monitoring and management of all risks associated with foreign exchange trading, paying more attention to the possible need for collateral to mitigate counterparty risk, a senior official at the Federal Reserve Bank of New York has warned.

In an exclusive interview with Risk.net's sister publication FX Week, Jeanmarie Davis, senior vice-president and head of the financial

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