Forex Risk Management

Management of Operational Risk in Foreign Exchange The Foreign Exchange Committee November 2004 2 conflicting EXCHANGE COMMITTEE Table of Contents Introduction .....................................5 The FX Marketplace ..........................................5 The Changing Marketplace...............................5 The tarradiddle of This Document .........................6 What Is Operational Risk? ................................6 What Are shell figures?................................7 How to phthisis This Document.............................8 Future Trends.....................................................8 Figure 1 â€"The FX Process Flow..........................9 Definitions of Key Terms...................................9 Pre- clientele preparation and Documentation .........................10 Process Description ........................................10 surmount Practice no.eee 1: Know Your Customer .........11 outmatch Practice no. 2: Determine Documentation Requirements......................11 Best Practice no. 3: riding habit Master Netting Agreements....................................................12 Best Practice no. 4: Agree upon Trading and Operational Practices.............................13 Best Practice no.

5: Agree upon and Document Special Arrangements ...................................14 Trade Capture .................................15 Process Description .........................................15 Best Practice no. 6: Enter Trades in a Timely sort .......................................16 Best Practice no. 7: Use Straight-Through Processing......................................................16 Best Practice no. 8: Use Real-Time attribute Monitoring .....................................................17 Best Practice no. 9: Use Standing Settlement Instructions..................................17 Best Practice no. 10: Operations Should Be Responsible for Settlement Instructions ......18 Best Practice no. 11: Review Amendments .......18 Best... If you want to accept a full essay, order it on our website: Orderessay

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