Spotlight - The new FX trading guidelines from two leading Australian industry associations.

First Published: e-Forex Magazine 17 / Spotlight / January, 2005

We examine how the adoption of STP confirmation guidelines between parties to foreign exchange transactions within Australia will significantly improve controls in the FX trading environment.Two of Australia’s leading financial industry associations have delivered a set of guidelines that they hope will significantly limit the risks of mistakes and mishandling in foreign exchange trades. The Australian Financial Operations Association (AFOA) and the Finance and Treasury Association (FTA) have released to their members guidelines which set out procedures for straight through processing, a process for confirming foreign exchange transactions between banks and their corporate clients.The guidelines are intended to provide both the corporate and the bank with a template to more easily negotiate the use of electronic confirmations. In addition to improving controls the adoption of these guidelines may reduce the need to send via facsimile signed copies of foreign exchange confirmations to counterparties. ...continued

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