Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (4685)	6/10/2001 4:26:19 PM
From: LLCF	Respond to of 74559

Don't remember you being off topic... just way over your head! LOL, as for Maurice, the guys is off the planet, not off topic... my mistake there. DAK

To: Ilaine who wrote (4685)	6/10/2001 4:31:13 PM
From: Ilaine	Respond to of 74559

Voluntary guidelines adopted recently by some major private financial institutions to deal with systemic risk from derivatives: >>EMBARGO NOT FOR RELEASE BEFORE 13.00 HOURS 22 FEBRUARY 2001 ANZ Bank Banamex Bank of Tokyo-Mitsubishi Barclays J P Morgan Chase Citibank DBS Deutsche Bank Goldman Sachs HSBC Morgan Stanley Nomura Securities Societe Generale Standard Bank of South Africa Standard Chartered UBS Warburg London, 22nd February 2001 Leading intermediaries in the foreign exchange market have agreed on a new set of good practice guidelines for foreign exchange trading. This is in response to a recommendation made in the report, published in April 2000, of the Financial Stability Forum Working Group on Highly-Leveraged Institutions, which was chaired by Sir Howard Davies. Major commercial and investment banks have collaborated in drawing up the guidelines, which are to be incorporated in existing codes of market conduct. The collaboration was facilitated by a group of central banks, which have an interest in ensuring orderly conditions in financial markets. The guidelines have been discussed and endorsed by the bodies which are responsible for foreign exchange market standards in the main financial centres. Trading Principles We, the firms listed above, have reviewed the following principles and have incorporated them into our own guidelines and codes of conduct. We encourage both companies and industry organisations that are responsible for the writing of codes and best practices to consider this input during production of such documents. We encourage the market participants around the world to incorporate these principles in their own codes to the degree that their national and regional jurisdictions allow. 1. We recognise that all trading parties need to put heightened emphasis and sensitivity on market risk and credit management issues during times of market volatility. When an individual currency is experiencing high volatility, intermediaries should pay special attention to the financing of trades in that currency. 2. Foreign exchange managers have a particular responsibility in the execution of orders at volatile times. Intermediaries should take care to discuss with customers the risks of operating in these environments and the possible scrutiny of actions. Market makers may reserve the right to refuse customer transactions that they feel may further disrupt or have the intent to disrupt the market. 3. The handling of all orders, including stop losses, requires vigilance by foreign exchange managers to ensure that there is mutual agreement with customers on the basis on which orders are accepted. Frequent communication with customers about market developments, particularly with a view toward determining their individual trigger levels, is strongly encouraged. 4. The handling of customer orders requires standards that strive for best execution for the customer in accordance with such orders subject to market conditions. In particular, caution should be taken so that customers. interests are not exploited when financial intermediaries trade for their own accounts. 5. Institutions and other trading organisations should be attentive at all times to ensure the independence and integrity of any market-related research that they publish. 6. Financial intermediaries are encouraged to implement rigorous internal guidelines concerning the handling of rumours and possible false information. We strongly endorse the model code1 that dealers should not relay information they know is false or they suspect may be inaccurate. 7. Manipulative practices by banks with each other or with clients constitute unacceptable trading behaviour. 8. Foreign exchange trading management should prohibit the deliberate exploitation of electronic dealing systems to generate artificial price behaviour.<< fsforum.org