Surge in exotic foreign exchange


LONDON -- Banks around the world are gearing up for what they predict will be a sharp increase in exotic foreign exchange. Although demand in Europe seems to be growing most dramatically for second-generation exotics, firms are projecting that both corporates and asset management clients will increase their use of first-generation exotics in Asia, emerging Europe and Latin America.

"Forex is suddenly no longer something that fell off the back of an equity trade," said Jamie Bonic, head of fo