Late in 1994, Mr. de Kwiatkowski purchased foreign currency contracts worth approximately $6.5 billion, and lost an estimated $215 million a few months later.
"We also are seeing strong growth in interest and demand from high-net-worth investors outside of Asia who are looking for opportunities to gain direct exposure to the renminbi through either deposits, foreign currency contracts or bonds, whereas in the past they have gained exposure indirectly through fund-type products".
NEW YORK TIMES Regulators Sue Foreign-Currency Traders | The Commodity Futures Trading Commission is suing 11 firms it claims sold foreign-currency contracts without registering with the agency.
Although Greek hoteliers worked in foreign-currency contracts before the euro was introduced, if they were forced to contract in drachmas after an exit, then their revenues would fall, too.Second, the prospect of lower costs is likely to be illusory.
The value of foreign-currency contracts intended to insulate it from sharp swings in the dollar versus the euro also deteriorated during the quarter, eating into earnings, EADS said.
Foreign currency futures contracts are now traded on the same exchange in Chicago as pork bellies, and the Philadelphia Stock Exchange trades options contracts on six major currencies.
In May a jury found Bear Stearns negligent for allowing a client, Henryk de Kwiatkowski, to invest millions in foreign currency future contracts without properly advising him of the high risk involved with the market, where he lost about $300 million.
The foreign currency denomination of contracts in international transactions can lead to international currency exposure at the country level with important economic and policy implications.
