Foreign exchange trading patterns 'shifting'

The recent financial climate has had an effect of the trading of foreign exchange, according to a recent survey.

Conducted by ClientKnowledge for the CME Group derivatives market, the report revealed that investors and traders are thinking differently about foreign currency exchange following the global recession.

Concerns that an agent would fail to fulfil a contractual obligation were high, with figures showing a 17 per cent rise in people worrying about counterparty risk.

The chief operating officer of ClientKnowledge David Poole, commented: "The combination of the global credit crisis and development of e-trading has resulted in a greater focus on post-trade services, risk management and increased efficiency."

He added: "Foreign exchange market participants are balancing taking advantage of opportunities for increased revenue whilst accounting for market, settlement and systemic risk."

Many currencies have fallen following fiscal difficulties around the world.

Towards the beginning of 2009, at the height of the global financial crisis, one pound sterling only bought $1.37.

Things have picked up since but investors are still wary as slow economic growth and worries that the forthcoming UK election could result in a hung parliament still pray on investors' minds.

Posted by Sarah Pitton

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