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South Korea Probes FX Derivs Traders

The South Korean financial regulator and central bank are investigating lenders trading of foreign-exchange derivatives.

The South Korean financial regulator and central bank are investigating lenders trading of foreign-exchange derivatives, Bloomberg reports. The move comes after the won rose to the highest levels since September 2008.

The probe will focus on who banks are trading with and their purpose for purchasing or selling non-deliverable forwards. The authorities will use the outcome of the probe to plan regulatory policies, including adjusting caps on banks’ maximum derivative holdings.

Click here for the story from Bloomberg.

Click here for additional coverage from Korea Times.





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