October 20, 1999

Dear Foreign Exchange Professional:

In the Reports and Documents section of this web site, you will find a new paper Foreign Exchange Transaction Processing: Execution to Settlement, Recommendations for Nondealer Participants. (pdf) The Operations Managers Working Group of the Foreign Exchange Committee authored this text.

The paper highlights sixteen operations-related topics or issues that businesses may want to review before starting to transact in the foreign exchange market. Each issue includes a list of related risks as well as recommendations--essentially "best practices"—that could remedy the risks. The recommendations have been drawn from the experience of dealers, institutions that have been active in the foreign exchange market for many years. The paper ends with a bibliography listing other Committee publications that may provide further insight into many of the issues raised in the paper.

We hope you find this paper useful. Please do not hesitate to contact myself or other members of the Committee if you have questions or comments regarding this paper or other publications of the Foreign Exchange Committee.

Sincerely yours,

Paul Kimball
Chairman