PaR signals return of FX risk specialists

"There’s been a lot of interest in outsourcing risk from a proprietary trading operation to something like this," said James Trott, partner in PaR Asset Management in London and former chief dealer at the Bank of England.

Consolidation in the banking industry, which reduced the number of banks making prices in FX, has fundamentally changed the dynamic of the market, continued Trott. And one way in which this is manifest is in the loss of banks’ risk appetites. "We’ve seen risk-taking in bank