DOCSLIB.ORG

Liquidity, Risk and Speed in Payment and Settlement Systems

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Liquidity, Risk and Speed in Payment and Settlement Systems Liquidity, risks and speed in payment and settlement systems – a simulation approach andsettlementsystems–asimulation andspeedinpayment risks Liquidity, StudiesE:31·2005 Bank ofFinland Harry Leinonen (ed.) Liquidity, risks and speed in payment and settlement systems – a simulation approach Bank of Finland Studies E:31 · 2005 ISBN 952-462-194-0 ISSN 1238-1691 Edita Prima Oy Helsinki 2005 Harry Leinonen (ed.) Liquidity, risks and speed in payment and settlement systems – a simulation approach Bank of Finland Studies E:31 · 2005 The views expressed in this study are those of the authors and do not necessarily reflect the views of the Bank of Finland or the respective institutions of the authors. ISBN 952-462-194-0 ISSN 1238-1691 (print) ISBN 952-462-195-9 ISSN 1456-5951 (online) Edita Prima Oy Helsinki 2005 Abstract This publication consists of eleven separate studies on payment and settlement systems conducted using simulation techniques. Most have been carried out using the payment and settlement system simulators BoF-PSS1 or BoF-PSS2 provided by the Bank of Finland and presented at the simulator seminars arranged by the Bank. The main focus in the analyses is on liquidity requirements, settlement speed, gridlock situations, gridlock resolving methods, liquidity economising, systemic risk, and the impact of shocks on system performance. The studies look at systems in several countries and cover both RTGS and netting systems as well as securities settlement systems. Keywords: simulation, payment and settlement system, liquidity, gridlock, systemic risk, counterparty risk 3 Tiivistelmä Tämä julkaisu koostuu yhdestätoista erillisestä maksu- ja selvitys- järjestelmää koskevasta tutkimuksesta, jotka on suoritettu simulointi- menetelmiä käyttäen. Useimmat näistä tutkimuksista on tehty käyttäen Suomen Pankin maksu- ja selvitysjärjestelmäsimulaattoreita BoF- PSS1 ja BoF-PSS2. Tutkimukset on esitelty Suomen Pankin järjestä- mien simulaattoriseminaarien yhteydessä. Pääpaino tutkimuksissa on ollut likviditeettitarpeiden selvittämisessä, katteensiirron nopeudessa, lukkiutumistilanteissa ja niiden avaamiseen liittyvissä metodeissa, likviditeetin käytön tehostamisessa, systeemiriskeissä sekä poikkeus- tilanne- ja vastapuoliriskeissä. Tutkimukset koskevat eri maissa toimi- via järjestelmiä, ja niiden joukossa on RTGS-järjestelmiä ja nettoutus- periaatteella toimivia maksujärjestelmiä sekä arvopaperikauppojen selvitysjärjestelmiä. Asiasanat: simulointi, maksu- ja selvitysjärjestelmä, likviditeetti, lukkiutumistilanne, systeemiriski, vastapuoliriski 4 Preface Payment systems are an integral part of an efficient modern economy. With continuous progress in globalisation and rapid technological advances, payment systems are, like other aspects of the economy, in a state of transition. International interdependencies and system linkages are increasing and real time settlement of payment by these systems is becoming commonplace. Liquidity demands will change in the future, as will the tools for liquidity management. The risks in payment and settlement systems are also changing, bringing new kinds of challenges. While counterparty credit risks are generally decreasing, liquidity risks are becoming more challenging. It is important to gain a deep understanding of the systems and their interdependencies in order to increase their efficiency under normal circumstances and their resilience in any abnormal situations that could arise. Payment and settlement systems have proven to be a complicated area into which simulation techniques provide a good way to penetrate sufficiently deeply. It is possible to build models that closely replicate the real operating environment. These laboratory environments can be used for testing scenarios that cannot be observed in real operating environments. The Bank of Finland has a long tradition of economic research, and modern payment and settlement systems have been one of the areas on which it has focused. This has resulted over the years in several research publications and seminars. The Bank decided in 1997 to start to develop a special PC-based tool, a simulator, for payment system analysis. The keen external interest in the Bank’s simulation studies and the simulator itself led to the decision to create a public simulator version for research purposes (BoF-PSS2), which was ready for general distribution by spring 2004. BoF-PSS2 is currently used by over 30 institutions worldwide, mainly central banks. I would like to thank all the authors for their contributions to this publication, which I trust will provide a good introduction to the simulation analysis of payment and settlement systems and will stimulate further research to enhance our understanding and improve the models and methodologies in the years ahead. For the finalisation of the publication we are indebted to Päivi Nietosvaara for the text editing, Brian Fleming for revising the language of some of the contributions and Teresa Magi for printing administration. We are also indebted to Esa Jokivuolle, Harry Leinonen and Jouko Vilmunen, who have served as the editorial board 5 for the project. Kari Nihtilä at the Finnish Bankers’ Association deserves our gratitude for the original idea of using simulation techniques for analysing the impact of EMU on Finnish payment systems. So does Kimmo Soramäki for designing and programming the first Bank of Finland simulator (BoF-PSS1) and for assisting in designing and testing the second one (BoF-PSS2). The European Central Bank warrants a special acknowledgement for making it possible to use Kimmo Soramäki’s know-how. The second simulator was built by MSG Software Oy, and a special thank you goes to project manager Leena Tyni and chief designer Ville Ruoppi. The simulator projects have also benefited from the support and contributions of Marianne Palva and Heikki Koskenkylä. Harry Leinonen has been the project leader, and as such has played a central role in creating the simulators. Finally, I would like to thank all other contributors, sponsors, commentators and users of the simulator for all the help they have provided during different periods of work on and with the simulator. The Bank of Canada, Bank of England and Federal Reserve Bank of New York deserve special acknowledgement for their concrete sponsorship of new features for the simulator. A more complete list of acknowledgements can be found on the simulator web site and in the user manual of the simulator. I hope users of the simulator will continue to be active and that the simulator will attract new users and sponsors. It is a great pleasure for me to present via this publication the fruits of this productive cooperation between central banks. Helsinki, May 2005 Matti Louekoski 6 Contents Chapter 1 Harry Leinonen – Kimmo Soramäki Introduction ......................................................................................... 9 Chapter 2 Harry Leinonen – Kimmo Soramäki Simulating interbank payment and securities settlement mechanisms with the BoF-PSS2 simulator..................................... 15 Chapter 3 Risto Koponen – Kimmo Soramäki Intraday liquidity needs in a modern interbank payment system – a simulation approach....................................... 71 Chapter 4 Harry Leinonen – Kimmo Soramäki Optimising liquidity usage and settlement speed in payment systems ......................................................................... 115 Chapter 5 Morten L. Bech – Kimmo Soramäki Gridlock resolution and bank failures in interbank payment systems ....................................................... 149 Chapter 6 Kurt Johnson – James J. McAndrews – Kimmo Soramäki Economising liquidity with deferred settlement mechanisms .... 177 Chapter 7 Johan Pettersson Simulation of liquidity levels and delays in the Swedish RIX systems............................................................ 217 Chapter 8 James J. McAndrews – George Wasilyew Simulations of failure in a payment system.................................. 227 7 Chapter 9 Paul Bedford – Stephen Millard – Jing Yang Analysing the impact of operational incidents in large-value payment systems: a simulation approach ............ 247 Chapter 10 Morten L. Bech – Kimmo Soramäki Systemic risk in a netting system revisited ................................... 275 Chapter 11 Emmanuel Mazars – Guy Woelfel Analysis, by simulation, of the impact of a technical default of a payment system participant....................................... 297 Chapter 12 Matti Hellqvist – Jenni Koskinen Stress testing securities clearing and settlement systems using simulations ............................................ 321 8 Chapter 1 Introduction Harry Leinonen – Kimmo Soramäki 1 Introduction ................................................................................... 10 9 1 Introduction The last 10 or 15 years have seen a growing interest in research and development in interbank payment and settlement systems. Central banks have allocated effort and resources to this special area. Among the factors behind the movement in this area are international cooperation, technological advances and a growing dependency on payment systems that function smoothly under all circumstances. Cooperation has been a particularly important factor in the euro area, which has seen extensive linking of payment systems in order to give the area a totally integrated interbank payment system. The key official fora have been the payment system committees of G10 central banks and of the European System of Central Banks, and working
Load more

Recommended publications
  • Guidance on Credit Risk in Banking
    Federal Reserve Bank ll★ K of Dallas DALLAS, TEXAS September 26, 2000 75265-5906 Notice 2000-58 TO: The Chief Executive Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Guidance on Managing the Settlement of Risk Arising from Foreign Exchange Transactions; Guidance on Credit Risk in Banking DETAILS The Basel Committee on Banking Supervision has issued a paper providing guidance on managing the settlement risk arising from foreign exchange transactions. Titled Supervisory Guidance for Managing Settlement Risk in Foreign Exchange Transactions, the paper stresses that banks should manage foreign exchange settlement risk, like other credit risks of a similar size and duration, through a formal process of measurement and control with active senior management oversight. It builds on the previous work of the Bank for International Settlement’s (BIS) Committee on Payments and Settlements Systems. Also, the Basel Committee has issued two papers providing guidance on credit risk in banking. Principles for the Management of Credit Risk encourages banking supervisors globally to promote sound practices for managing credit risk. It identifies sound practices that banks should use in managing the credit risk of all their activities, both banking and trading. Best Practices for Credit Risk Disclosure identifies the credit risk information that market participants and supervisors need to meaningfully assess banking organizations. It en- courages banks in all countries to provide that information to the public. MORE INFORMATION All three papers are part of the committee’s ongoing effort to strengthen procedures for risk management in banks and are revisions of consultative papers issued in July 1999.
    [Show full text]
  • Escb-Cesr Recommendations for Securities Settlement
    Ref.: CESR/09-622 ESCB-CESR RECOMMENDATIONS FOR SECURITIES SETTLEMENT SYSTEMS AND RECOMMENDATIONS FOR CENTRAL COUNTERPARTIES IN THE EUROPEAN UNION Formatted: Centered, Adjust space between Latin and Asian text, Adjust space between Asian text and Revision marks compare the CPSS-IOSCO Recommendations numbers for securities settlement systems (November 2001) and Deleted: ¶ Recommendations for Central Counterparties (November Formatted: Font: Century Schoolbook, 14 pt 2004) with the ESCB-CESR Recommendations1 Deleted: ¶ Formatted: Font: (Default) Century Schoolbook, 10 pt May 2009 1 Formatted: Font: (Default) Arial, 8 Note: In order to enable a better comparison of the two sets of recommendations the report structure of the ESCB-CESR recommendations was adapted to the format of the CPSS-IOSCO Recommendations for CCPs (e.g. the key issues in the pt ESCB-CESR recommendations follow directly the recommendation, whereas in CPSS-IOSCO RCCPs the key issues follow Formatted: Font: (Default) Arial, 8 the explanatory paragraphs, etc.). pt Table of Contents PART 1: RECOMMENDATIONS FOR SECURITIES SETTLEMENT SYSTEMS ...3 RECOMMENDATION 1: LEGAL FRAMEWORK ...............................................................4 RECOMMENDATION 2: TRADE CONFIRMATION AND SETTLEMENT MATCHING6 RECOMMENDATION 3: SETTLEMENT CYCLES AND OPERATING TIMES...............8 RECOMMENDATION 4: CENTRAL COUNTERPARTIES (CCPS) .................................10 RECOMMENDATION 5: SECURITIES LENDING ..........................................................12 RECOMMENDATION 6: CENTRAL
    [Show full text]
  • The Great FX Fix
    cash management CONTINUOUS LINKED SETTLEMENT The great FX fix THE ADVENT OF CONTINUOUS LINKED SETTLEMENT HAS PREVENTED FX SETTLEMENT FAILURES FROM TURNING INTO A GENERAL GLOBAL FINANCIAL CATASTROPHE. WILL SPINNEY EXPLAINS HOW THE CLS SYSTEM WORKS. Executive summary The Continuous Linked Settlement system was created in 2002 by the world’s largest foreign exchange banks in response to central bank concerns about the impact of potential foreign exchange settlement failures on the international financial system. But after the liquidation order, Bankhaus Herstatt’s New York correspondent bank suspended all outgoing dollar payments from Herstatt’s account, leaving its counterparties fully exposed to the value of the deutschmarks they had paid the German bank earlier on in the day. This incident almost caused the collapse of the international banking system. In more recent times the collapse of US investment bank Drexel Burnham Lambert in 1990, Bank of Credit and Commerce International the following year, Barings in 1995 and Lehman Brothers in 2008 are all examples of Herstatt risk, although losses in the case of Lehman were limited by the use of CLS. A more descriptive name for Herstatt risk might be FX settlement, counterparty or cross-currency esigned to settle foreign exchange (FX) settlement risk. transactions and eliminate settlement risk in a The only way to eliminate settlement exposure of this market that had not traditionally settled payment- nature entirely is to settle both transactions, payment- versus-payment (see Box 1), Continuous Linked versus-payment, using a real-time settlement system. It was DSettlement (CLS) is a delivery system rather than a payment for this purpose that the hybrid CLS system was designed, to system.
    [Show full text]
  • Settlement Liquidity and Monetary Policy Implementation -- Lessons from the Financial Crisis
    Morten L. Bech, Antoine Martin, and James McAndrews Settlement Liquidity and Monetary Policy Implementation—Lessons from the Financial Crisis • The U.S. dollar clearing and settlement 1.Introduction system performed dependably during the financial crisis, processing record volumes he U.S. dollar clearing and settlement system was little and values of trades executed in stressed Tnoticed during the recent financial crisis, mainly because financial markets. it performed dependably, processing record volumes and values of trades made in stressed financial markets.1 Its • Emergency policy measures employed by successful operation was in part a result of the collaborative the Federal Reserve to provide liquidity and efforts undertaken by stakeholders over decades to improve stability to the financial system during and risk management and operational resiliency. Under the smooth after the crisis had important effects on surface, though, the dollar clearing and settlement system settlement liquidity and thus on the efficiency experienced important changes during the crisis. of clearing and settlement system activity. This article focuses on the ease with which market participants can discharge their payment and settlement obligations. We denote this as settlement liquidity. Our main • The measures led to a substantial decrease interest is on the settlement liquidity of the Federal Reserve’s in daylight overdrafts extended by the Fedwire Funds Service, the major large-value payment system Federal Reserve and an improvement in in the United States. We discuss how to measure settlement payment settlement timing. liquidity, and document the evolution of some of its key drivers over time. In particular, we show how the policy measures • The reduction in overdrafts lowered the Federal aimed at achieving financial and economic stability during and Reserve’s credit risk while the earlier settlement after the financial crisis have had a major impact on settlement time suggested significant efficiency gains and diminished operational risks.
    [Show full text]
  • BNY Mellon Corporate Pillar 3 Disclosure, March 2020
    The Bank of New York Mellon Corporation Pillar 3 Disclosure March 31, 2020 THE BANK OF NEW YORK MELLON CORPORATION Pillar 3 Disclosure March 31, 2020 Table of Contents Page Disclosure Road Map 2 Introduction 3 Scope of Application 4 Capital Structure 6 Capital Adequacy 7 Capital Conservation and Countercyclical Capital Buffers 8 Credit Risk: General Disclosures 9 Credit Risk: Disclosures for Portfolios Subject to IRB Risk-based Capital Formulas 12 Counterparty Credit Risk for Derivative Contracts, Repo-style Transactions and Eligible Margin Loans 16 Credit Risk Mitigation 21 Securitization Exposures 24 Operational Risk 26 Equities Not Subject to Market Risk Rule 28 Market Risk 29 Interest Rate Risk for Non-trading Activities 32 Supplementary Leverage Ratio 32 Forward-looking Statements 34 Acronyms 36 Glossary 37 The Bank of New York Mellon Corporation Pillar 3 Disclosure Disclosure Road Map The table below shows where disclosures relating to topics addressed in this Pillar 3 Disclosure can be found in The Bank of New York Mellon Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 (the “Form 10-Q”) and the Annual Report on Form 10-K for the year ended Dec. 31, 2019 (the “2019 Annual Report”). 1st Quarter 2020 2019 Form 10-Q Annual Report Pillar 3 Section Disclosure Topic Page Reference(s) Capital Requirements - Existing U.S. Requirements 45-47 59-60 Introduction Advanced Approaches Risk-Based Capital Rules Annual Only 60 Consolidation and Variable Interest Entities 75-76 120-121, 149-150 Restrictions
    [Show full text]
  • Settlement Risk in Foreign Exchange Transactions
    Guideline Subject: Settlement Risk in Foreign Exchange Transactions Category: Sound Business and Financial Practices No. E-24 Date: June 2013 Introduction This guideline establishes OSFI’s expectations regarding the management of foreign exchange settlement risk by banks, bank holding companies and trust and loan companies (collectively referred to as banks in this guideline). The basis for this guideline comes from the Basel Committee on Banking Supervision’s (BCBS) paper entitled Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions. Banks are expected to take account of the nature, size, complexity and risk profile of their foreign exchange transactions when assessing their practices against the principles in this guideline in the course of normal compliance reviews. Further, banks are expected to develop a plan to remedy any deficiencies that come to light during their assessments. This will enable them to respond to questions that may arise when OSFI supervisors review their foreign exchange settlement risk management practices. 255 Albert Street Ottawa, Canada K1A 0H2 www.osfi-bsif.gc.ca Table of Contents Principle 1: Governance .............................................................................................................. 3 Principle 2: Principal risk............................................................................................................ 6 Principle 3: Replacement cost risk ...........................................................................................
    [Show full text]
  • Delivery Versus Payment in Securities Settlement Systems
    BANK FOR INTERNATIONAL SETTLEMENTS DELIVERY VERSUS PAYMENT IN SECURITIES SETTLEMENT SYSTEMS Report prepared by the Committee on Payment and Settlement Systems of the central banks of the Group of Ten countries Basle September 1992 © Bank for International Settlements 1992. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN 92-9131-114-6 Published also in French, German and Italian. Contents Section Page Forword Members of the delivery versus payment study group 1. Introduction and summary ................................................................................................... 1 Introduction ....................................................................................................................... 1 Summary ............................................................................................................................ 2 Additional issues relating to cross-border securities transactions ..................................... 8 2. Analytical framework: Credit and liquidity risks in securities clearance and settlement .... 10 Key steps in clearance and settlement ............................................................................... 10 Types and sources of risk .................................................................................................. 12 The delivery versus payment principle .............................................................................. 15 3. Alternative structural approaches to delivery versus payment ............................................
    [Show full text]
  • Prudential Reporting of Market Risk Under the Standardised Approach to Market Risk
    Guidance Note Prudential reporting of market risk under the standardised approach to market risk Issued December 2018 Page 1 of 11 Unrestricted Guidance Note on Prudential Reporting of Market Risk under the Standardised Approach to Market Risk Glossary The following abbreviations are used within the document: DvP Delivery versus Payment SAM Standardised Approach to Market risk CD Certificate of Deposit FRN Floating Rate Note JIB Jersey incorporated registered deposit takers Page 2 of 11 Guidance Note on Prudential Reporting of Market Risk under the Standardised Approach to Market Risk Contents Glossary..............................................................................................................................2 Contents .............................................................................................................................3 1 Overview .....................................................................................................................4 Introduction ..................................................................................................................................4 2 Sheet ‘5.1 FX and Gold’ ................................................................................................5 Introduction ..................................................................................................................................5 Foreign Exchange Positions...........................................................................................................5 A: Foreign
    [Show full text]
  • Supervisory Guidance for Managing Settlement Risk in Foreign Exchange Transactions
    Foreign exchange settlement risk Supervisory Guidance for Managing Settlement Risk in Foreign Exchange Transactions I Introduction 1. Foreign exchange (FX) settlement risk is the risk of loss when a bank in a foreign exchange transaction pays the currency it sold but does not receive the currency it bought. FX settlement failures can arise from counterparty default, operational problems, market liquidity constraints and other factors. Settlement risk exists for any traded product but the size of the foreign exchange market makes FX transactions the greatest source of settlement risk for many market participants, involving daily exposures of tens of billions of dollars for the largest banks. Most significantly, for banks of any size, the amount at risk to even a single counterparty could in some cases exceed their capital. 2. FX settlement risk is a form of counterparty risk involving both credit risk and liquidity risk. As with other forms of risk, banks need to ensure that they have a clear understanding of how FX settlement risk arises. On the basis of this understanding, policies for managing the risk should be developed at the highest levels within the bank and implemented through a formal and independent process with adequate senior management oversight. As part of this process, a bank has to have measurement systems that provide appropriate and realistic estimates of FX settlement exposures on a timely basis. The development of counterparty settlement limits and the monitoring of the exposures against these limits is a critical control function. The bank also needs to have procedures for reacting in a prompt and balanced manner to failed transactions or other settlement problems.
    [Show full text]
  • Treasury Market Practices Group Proposed Practice Guidance on Clearing and Settlement
    TMPG CONSULTATIVE NOTE Treasury Market Practices Group Proposed Practice Guidance on Clearing and Settlement Background: In July 2018, the Treasury Market Practices Group (TMPG) published a consultative White Paper on Clearing and Settlement in the Secondary Market for U.S. Treasury Securities. The White Paper described the various clearing and settlement arrangements for U.S. Treasury securities, provided detailed maps that illustrated the process flows, and cataloged potential areas of risk. The TMPG found that market participants may not be applying the same risk management rigor to their U.S. Treasury clearing and settlement activities as they do to other aspects of risk taking. Further, risk management practices may not have kept pace with the increased speed of trade execution. During the consultation period for the White Paper, the TMPG proactively conducted outreach to a diverse set of industry groups and market participants to promote awareness about counterparty credit risks and seek feedback on the accuracy and completeness of the various arrangements and resiliency issues discussed.1 Apart from discussions at the outreach meetings, the TMPG also received comment letters with reactions to the paper and suggestions to improve the clearing and settlement processes (see a summary of comments here). I. TMPG proposes best practice recommendations Reflecting on the risks identified in the clearing and settlement process and also feedback received on the White Paper, the TMPG is proposing to strengthen certain existing best practices and is proposing several new practice recommendations. As an over-arching recommendation, the TMPG calls on market participants in the Treasury, agency debt and agency MBS markets to apply rigorous risk management to clearing and settlement practices to all products, including instruments with high credit quality or a short settlement cycle.
    [Show full text]
  • The Reduction of Systemic Risk in the United States Financial System
    THE REDUCTION OF SYSTEMIC RISK IN THE UNITED STATES FINANCIAL SYSTEM HAL S. SCOTT* I. SYSTEMIC RISK REDUCTION: THE CENTRAL PROBLEM .......................................673 II. CAPITAL REQUIREMENTS......................................679 A. CCMR Recommendations Aligned with the White Paper ....................................680 B. CCMR Recommendations That Differ from the White Paper and Pending Legislation: How Much and What Type of Capital.......682 1. How Much Capital: Regulation and Markets.............................................682 2. What Counts as Capital?........................685 III. CLEARINGHOUSES AND EXCHANGES FOR DERIVATIVES ..................................................686 A. The Ability of the Clearinghouse to Reduce Counterparty Risk...........................687 1. Customized or Illiquid Contracts .........688 2. Contracts Involving Nonparticipants in the Clearinghouse...............................691 B. The Optimal Number and Scope of Clearinghouses...............................698 C. Ownership of Clearinghouses .....................700 D. Collection and Publication of Data .............701 E. Exchange Trading..........................................702 F. The International Dimension.......................705 IV. RESOLUTION PROCEDURES ...................................706 A. The Importance of Resolution Procedures ..706 B. What Institutions Should be Subject to Special Resolution Procedures?...................708 * Nomura Professor of International Financial Systems, Harvard Law School. 672 Harvard Journal
    [Show full text]
  • Guidance Note Prudential Reporting of Market Risk Under The
    Guidance Note Prudential Reporting of Market Risk under the Standardised Approach to Market Risk Issued December 2018 Page 1 of 11 Guidance Note on Prudential Reporting of Market Risk under the Standardised Approach to Market Risk Glossary The following abbreviations are used within the document: DvP Delivery versus Payment SAM Standardised Approach to Market risk CD Certificate of Deposit FRN Floating Rate Note JIB Jersey incorporated registered deposit takers Page 2 of 11 Guidance Note on Prudential Reporting of Market Risk under the Standardised Approach to Market Risk Contents Glossary............................................................................................................................ 2 Contents ........................................................................................................................... 3 1 Overview ................................................................................................................... 4 Introduction ...................................................................................................................................4 2 Sheet ‘5.1 FX and Gold’ .............................................................................................. 5 Introduction ...................................................................................................................................5 Foreign Exchange Positions ............................................................................................................5 A: Foreign Currency Positions
    [Show full text]