James Kemp Managing Director, FX Division at AFME.
James Kemp Managing Director, FX Division at AFME.

Unintended consequences - An industry united but under threat

The largest and most liquid over-the-counter (OTC) market in the world, that plays a fundamental role in the global economy and underpins the entire financial system, is under threat of regulation in the US and in Europe. The proposed changes could have serious unintended consequences for the FX industry, which is united in its efforts to explain to the regulators why the FX market should be treated differently.

First Published: e-Forex Magazine 43 / Leader / April, 2011

The FX market is at a regulatory crossroads and there has never been a more appropriate time for the industry to deliver a consolidated voice in front of regulators, stakeholders and other key market participants.   The Global FX Division was set up in June 2010, by the Association for Financial Markets in Europe (AFME), in co‐operation with its partners, the Securities Industry and Financial Markets Association (SIFMA) and the Asian Securities Industry and Financial Markets Association (ASIFMA). The Global FX Division, comprising 21 members collectively representing more than 85% of the FX market, supports efforts to promote an efficient global FX market and monitors developments in public policy and regulation that could affect the FX markets.  It is at the forefront of arguing the FX case in the face of proposed legislation on both sides of the Atlantic. US lead on regulatory change  In the US, the Dodd Frank Act proposes that OTC FX forwards and swaps will be regulated as...continued

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