Appropriate risk management, compliance, and review structures should be in place to manage and mitigate the risks that arise from a Market Participant’s activities in the FX Market. These structures vary in complexity and scope, but generally share some common aspects. For example:
• The responsibility rests with the business unit which owns the risk it incurs in con-ducting its activities.
• In addition, there may be both a risk management function that oversees risk-taking activities and assesses those risks independently from the business line, and an independent compliance function that monitors compliance with Applicable Law and Standards.
• Finally, there may be a review or audit function that provides independent review of, among other things, internal control systems and the activities of the business unit and the risk management and compliance functions.
Periodic independent reviews of risk and compliance controls should also be under-taken, including a review of the
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