The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

Reverse barometers

There are a few signs that activity is starting to slow down. As players find themselves with a bit more time on their hands, it’s a near certainty that the talk of who has done well and, more likely, who has done badly will increase.

When I was at Nomura, one of my superiors used to come and put the odd position on. “Where do you want to leave your stop?” I’d immediately ask. “Surely you mean my profit?” he’d reply. Let’s just say the former was always triggered before the latter.

The practice of senior management having a punt raises issues: specifically, what should the banks full-time risk takers do when their boss has stepped up to the plate? Should they go with the big cheese, stay square, or trade against them?

There is plenty of buzz around about a top 10 Euromoney bank that has done its cods as a result of this type of dilemma. Word is that the bank’s global head of FX had a punt in Turkish lira, which his emerging market options desk decided to follow.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree