Francesc Riverola,
Forex market revives but as a different animal
By Steve Johnson, Financial Times
Prior to the onset of the financial crisis, the foreign exchange market was, in many ways, the epitome of credit-fueled excess.
Trading volumes rose fast and the carry trade, under which speculators borrowed cheap Swiss francs and Japanese yen and used the money to reap the generous yields on offer from the likes of the antipodean dollars, pushed currencies to extreme levels.
Settlement model aids FX market success
By Geraldine Lambe, Financial Times
In the dreadful week following Lehman Brothers’ collapse, more than $150bn (£99bn, €111bn) of Lehman’s FX trades were settled successfully. As the financial crisis reached its zenith and other financial markets struggled to come to grips with the complex web of counterparties caught up in the Lehman aftermath, the FX machine continued without a visible hiccup.