Australian derivatives houses have started to review their risk management procedures in the wake of National Australia Bank 's AUD600 million losses on unauthorized foreign exchange options trades. The Australian Prudential Regulatory Authority ,the financial regulator, has announced it will review the risk management practices of other deposit-taking institutions.
Liz McGraw , spokeswoman at Westpac Banking Corp. , said it is reviewing its risk management procedures in light of recent events, but declined to elaborate.
The move to review internal risk management systems has spread through the time zone to Asia. "Especially now that volatility has increased in recent months, we'll see a step up in surveillance of traders carrying positions," said Lee Chee Pin , head of fx at Bank of America in Singapore.
