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Chapter 6 A rapidly changing foreign exchange market This chapter is designed to show how much the foreign exchange market has changed over the years. The days of noisy currency trading floors where dealers shouted at each other have long gone, replaced by computers and people tapping at keyboards or talking quietly to each other. When did the foreign exchange market start to change and why does this matter? A different market begins to emerge As with LIBOR, there are suggestions that rigging or manipulating the foreign exchange (FX) market began in 2005. To

in Holding bankers to account

Chapter 7 Manipulating the foreign exchange market As we saw in the last chapter, the BIS Triennial Surveys show that dealers generally take orders from clients but executed them in the market as principal, bearing the consequent price risk, rather than executing in the market as agent acting for the client. To manage the risks associated with the flow of client orders, dealers hedge by executing FX transactions in and around the calculation window, which results in a large spike in the trading volume. This creates a market in which the dealer is agreeing to

in Holding bankers to account
A decade of market manipulation, regulatory failures and regulatory reforms

This book provides a compelling account of the rigging of benchmarks during and after the financial crisis of 2007–8. Written in clear language accessible to the non-specialist, it provides the historical context necessary for understanding the benchmarks – LIBOR, in the foreign exchange market and the Gold and Silver Fixes – and shows how and why they have to be reformed in the face of rapid technological changes in markets. Though banks have been fined and a few traders have been jailed, justice will not be done until senior bankers are made responsible for their actions. Provocative and rigorously argued, this book makes concrete recommendations for improving the security of the financial services industry and holding bankers to account.

Why China survived the financial crisis

per cent of the 450 million laborers in the countryside (World Bank 1996b, 50–1; Yabuki and Harner 1998, 144; J. Y. Lin, Cai and Li 1996, 179–81). Central to China’s economic growth has been the liberalization of the foreign trade and investment regime, and the adoption of an ambitious “open-door” strategy. Prior to the introduction of the Deng reforms, China remained a backward and closed economy, with foreign trade amounting to a minuscule 4.7 per cent of GNP. However, the liberalization of the foreigntrade and exchange-rate regimes, followed by further wide

in The Asian financial crisis

silver was widely used for coinage. London long had the largest share of trade with Asia and India, where silver was all-important, as it was used both as a commodity and a means of exchange. Branches of all the Indian and Far Eastern banks were located in London, and ‘these were the principal intermediaries for the mercantile trade with the Far East’.2 London was also convenient for supplying the coinage requirements of continental European nations. There were also regular weekly shipments from American and Mexican producers in London, which were dispatched to

in Holding bankers to account
Abstract only

activities. As a first step in implementing this plan, in 1979 he formed ESI London, principally as a means of exploiting British and NATO military markets, while $10 million worth of equity in ISC was also sold on the Luxembourg Stock Exchange. To run the British operation, Guerin recruited a member of the British establishment, Sir David Checketts KCVO, who following a distinguished career in the Royal Air Force had been Equerry to both the Duke of Edinburgh (1961–66) and Prince of Wales (1966–70). Throughout the 1970s, Checketts was Private Secretary and Treasurer to

in Ferranti: A History
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The decisions of 21 July 2011

burden-sharing between taxpayers and investors, and has to help foster Greek debt sustainability’.2 Bondholders, he wrote, must make a material contribution to the effort. He indicated that the most appropriate way to achieve this would be through the exchange of the old bonds for new ones maturing seven years later. Finally, he noted that the matter must be solved by the end of July; otherwise, Greece would be at risk of a disorderly default. The President of the ECB, Jean-Claude Trichet, reacted immediately. He said that if Greece’s private sector creditors were to

in The European debt crisis
Open Access (free)

Securities Act 1933 and the Securities Exchange Act 1934, and regulations of the Securities and Exchange Commission under those Acts; stock exchange listing rules (mainly the New York Stock Exchange (NYSE) and the NASDAQ); the Federal Reserve and other federal and state agencies with respect to banks and other financial institutions and the Sarbanes-Oxley Act 2002, amongst others. Because of the federal system of US law, these different sources of law are not always harmonised and corporations are often subject to different

in Lehman Brothers
Constituting the cultural economy

and exchanges. The discussion that follows traces key aspects of this governance mix for the constitution of a cultural economy, as the contingent nature of cultural products, cultural markets and cultural work puts into question certain established frames for analysing economic organisation. Cultural industries make slippery analytic objects:1 sectoral boundaries can be hard to define; ‘firms’ can be only loosely integrated, hidden, short-lived or very mobile (and often are all of these); product design, labour processes and work practices can change very rapidly

in Market relations and the competitive process
Crisis, reform and recovery

The Asian financial crisis of 1997-98 shook the foundations of the global economy and what began as a localised currency crisis soon engulfed the entire Asian region. This book explores what went wrong and how did the Asian economies long considered 'miracles' respond, among other things. The combined effects of growing unemployment, rising inflation, and the absence of a meaningful social safety-net system, pushed large numbers of displaced workers and their families into poverty. Resolving Thailand's notorious non-performing loans problem will depend on the fortunes of the country's real economy, and on the success of Thai Asset Management Corporation (TAMC). Under International Monetary Fund's (IMF) oversight, the Indonesian government has also taken steps to deal with the massive debt problem. After Indonesian Debt Restructuring Agency's (INDRA) failure, the Indonesian government passed the Company Bankruptcy and Debt Restructuring and/or Rehabilitation Act to facilitate reorganization of illiquid, but financially viable companies. Economic reforms in Korea were started by Kim Dae-Jung. the partial convertibility of the Renminbi (RMB), not being heavy burdened with short-term debt liabilities, and rapid foreign trade explains China's remarkable immunity to the "Asian flu". The proposed sovereign debt restructuring mechanism (SDRM) (modeled on corporate bankruptcy law) would allow countries to seek legal protection from creditors that stand in the way of restructuring, and in exchange debtors would have to negotiate with their creditors in good faith.