September 28, 2000

The Foreign Exchange Committee recommends the use of two new templates (1) the Knock-Out/Knock-In Barrier and (2) the Binary Option Template.

The Foreign Exchange Committee, at the request of various market participants, convened a Committee study group to produce FX exotic option templates designed to reflect current market practice. The first template produced is applicable to European Knock-Out Options and Knock-In Options, the second to Binary Options. The Foreign Exchange Committee believes that the templates will improve and streamline the documentation process for these options and strongly encourages the widespread use of these templates by market participants.