Joshua Derrick Manager - Trading Standards, SWIFT
Joshua Derrick Manager - Trading Standards, SWIFT

FX and derivatives standards - one for all or all for one?

There is no question that the financial industry is in a dramatic state of change. If we can be sure of one thing right now, it is that there will most certainly be a raft of regulations and reforms introduced which will require all of us to implement new processes and revisit the way we carry out our business. A large proportion of these changes will be centred on the electronic communication of trades.

We can already see this happening, with some FX and derivatives moving to exchange platforms, and with various clearing houses getting into the mix as well. It is clear that further and more far-reaching change to the FX and derivatives landscape, as we know it, will become a fact of life. What exactly these potential shifts will be and how we will manage them remains to be seen, particularly as operational and IT development budgets continue to be downsized, but one thing is clear, we will not as an industry be able to wade our way through all of the challenges without a standardised approach to our business and to the changes which we will need to implement. Over the past few years, the foreign exchange and derivatives business has seen considerable growth and, while the current crisis in the financial industry has had significant effect on the overall market resulting in indications of a slow-down in trading activities, the foreign exchange markets have continued to expand. What can be done now to ensure...continued

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