Banks that do not settle currency trades through a central system could be shut out of dealing at the best prices, according to  Deutsche Bank, one of the three biggest foreign exchange banks. Zar Amrolia, Deutsche’s head of FX, said a two-tier system could become a reality as banks reassess their risks in the wake of the credit crunch. Banks should factor settlement risk into all the prices they make, he said, warning: “We could see two prices going forward…”.

This entry was posted by Gwen Robinson on Friday, August 21st, 2009 at 4:41 and is filed under Capital markets, People. Tagged with deutsche bank. Edit this entry.