Hi All,

Here is a great question I just had come in and my response.


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Hi Paul

What are some sources to find out about restrictions that are placed on institutions in terms of allowable daily, weekly pip movement.

Basically some of the controls placed on them so they don't over/undervalue currencies.

Thanks

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There are no limits to what they can do other than the controls that are added by the in house risk people. I can tell you that since 2007 the risk and compliance people are all over us, you can't breath without them asking why.

In essence everyone has their trading limits and you have to stick to them, but as a bank, globally they can do what they like and contrary to what people think they are very conservative in what they do,

For example when the SNB lifted the peg a year and a half ago now, Barclays lost 150 million in a few minutes but of course this is peanuts to them, they have been fined billions for other deeds.

But it shows that even in a real catastrophe they were very lightly touched, so risk management is everything to them.

I hope this helps

Kind regards

Paul