Buy Side View: Risk Managing in Extreme Market Conditions

Richard Preschern, CEO of Robosig and Co-Founder at FX Vision, talks to Profit & Loss deputy editor, Galen Stops, about the lessons he’s learnt from recent risk events. Speaking about the volatility following the Swiss National Banks’ decision to pull its peg to the euro, Preschern comments: “What you understand is that the execution that you get during these events is nothing to do with what you model because the market is simply not there. “So what you have to do in terms of risk management is look at your extreme points in terms of exposure because you just don’t know that you’re going to be able to get out, which is what causes a lot of wreckage in the market.”
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How Technology is Shaping Regional FX Banks

Svante Hedin, global head of electronic markets at SEB Merchant Bank, explains to Galen Stops, deputy editor of Profit & Loss, how technology is changing the role of the regional banks. Hedin says that the evolution of the regional or super-regional banks is being driven by a number of factors, one of which is technology. “It’s an enabler for some of the banks that at some point were dominant players in their particular currencies and then as the years have gone past they have perhaps under-invested and not quite kept up with the overall progress of technology and effectively get swallowed up by some of the larger guys,” he says.
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