Heavyweights tackle rising un-named counterparty risk

Fears over money laundering in the post-September 11 environment and heightened credit risk is driving interest in solving the problem, which occurs when an investment adviser engages a dealer to trade on behalf of a client whose identity is withheld.

"If I am dealing with an investment adviser [IA] and the client they are acting for is not known to me, that has serious implications. Although my contact is with the IA, my risk is with the un-named counterparty," explained one FX manager at a