FX round-up: FX committee warns on retail

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In an open letter to market participants, the New York-based Foreign Exchange Committee has warned about some of the dangers posed by the advent of retail FX products. The committee says technology often separates “the wholesale foreign exchange dealer from the end user, perhaps by multiple intermediaries”. This makes it difficult for banks to “know their customer”, and possibly hampers such compliance measures as anti-money-laundering and counter-terrorism obligations.