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COMMITTEE LETTER REGARDING ITS RELEASE OF THE REVISED GUIDELINES FOR FOREIGN EXCHANGE TRADING ACTIVITIES

March 25, 1996

Dear Foreign Exchange Professional:

Enclosed is a copy of the Foreign Exchange Committee's (Committee) recently revised Guidelines for Foreign Exchange Trading Activities. Given current events and the evolving nature of the market, the Committee feels that the issues raised in the Guidelines are critically important to safely conducting foreign exchange trading activities. Although the Committee publishes the Guidelines in its annual report each year, this particular version incorporates the supporting documents that until now were only referenced.

This release of the Guidelines underscores the Committee's commitment to their adoption and use. The Committee wishes to encourage thoughtful consideration of the issues presented here and encourages you to disseminate the Guidelines to your foreign exchange colleagues. As a further commitment to the concepts addressed in the Guidelines, the Committee is planning a public presentation and discussion of the Guidelines later this year.

The Committee feels that many of the issues raised in the Guidelines are applicable to all staff members associated with foreign exchange trading activities; therefore, the Guideline references to "trader" or "trading room staff" are intended to be inclusive of all staff associated with the foreign exchange trading, sales, and analytical support.

The Guidelines' ten-year history and regular revision cycle indicate that it is a work in progress; it evolves with the market place. While the Committee hopes that the Guidelines present issues clearly and concisely, the Committee's Trading Practices Subcommittee stands ready to address your questions (see Guidelines page 26). In addition, the Committee would welcome any suggestions you may have on how to further improve the Guidelines.

Attached is a copy of the Committee's Document of Organization and a list of its 1996 Membership. Do not hesitate to contact me or other members of the Committee with questions or comments regarding the Committee's work.

Sincerely yours,

John Finigan
Chairman