The U.S. Federal Reserve has recommended standards for certain types of FX transactions that banks offer to retail customers, The Wall Street Journal reports. The proposal includes banks regulated by the Fed and outlines requirements for disclosure, record-keeping, business conduct and documentation for retail FX transactions.
As per the proposal, banks should notify the Fed before they offer retail customers certain FX options as well as futures and must be well-capitalized and prohibit fraudulent transactions. The proposal does not include regular spot transactions, listed options on foreign currency and foreign-currency forwards and swaps.
Click here for the story from The Wall Street Journal.