Banks In London Shun Forward FX Market Capital Adequacy Cited, Boost For CME?


Banks in London are generally reducing or terminating their dealing in the forward foreign exchange market for their own account because the returns are too low when measured against pending capital adequacy requirements.

Analysts say that this development will give a boost to trading in exchange-traded futures and options and other derivative instruments, which aren’t subject to the same stiff capital requirements. This could mean that the grass at the Chicago Mercantile Exchange (CME) and t