Heering Ligthart President ACIThe Financial Markets AssociationFortis Bank SA-NV Merchant / Institutional Banking
Heering Ligthart President ACIThe Financial Markets AssociationFortis Bank SA-NV Merchant / Institutional Banking

Online FX Trading – Wild West?

Heering Ligthart examines the implications surrounding the recent FX trading scandal in New York.

First Published: e-Forex Magazine 13 / Foreword / January, 2004

Again a scandal shocked the foreign exchange markets recently. After the Baltimore case, it was now the turn of the market place in New York to be in the frontline of the headlines in papers and magazines all over the world. Allegations were made about 47 individuals. However, according to the press just a few were really FX traders and the others were more or less fund managers offering high returns to their retails investors by using foreign exchange products for their investments. This is foreign exchange as a “separate asset class “ in every aspect. Nevertheless, the press were concentrating more on the product - foreign exchange - and much less on who were involved and one of their conclusions was that these markets are not regulated, suggesting or indicating that the lack of regulation caused all these problems. Reading all the articles and not knowing all the facts a lot of questions can be asked with regard to what happended between the traders and broker involved:- how could this happen...continued

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