Felix Shipkevich
Felix Shipkevich

Raising the licensing barriers in Retail FX

In the first of his regular series of articles for e-Forex on regulatory issues in FX, Felix Shipkevich General Counsel at CMS Forex looks at recent efforts to enforce regulations in Retail FX and what holds the key to successful regulation in the future.

First Published: e-Forex Magazine 34 / Regulatory Roundup / January, 2009

The birth of retail foreign exchange regulations brings to mind Clint Eastwood in the movie The Good, the Bad and the Ugly.  Fearless and determined, Eastwood calmly dispatches a group of bandits in the streets of a dusty Wild West town.  That is how we imagine the Wild West in the 19th century--full of outlaws trying to dominate the newly built American towns.  The early years of foreign exchange regulations can be compared to the Wild West.  Fortunately, in recent years regulators have taken aggressive enforcement steps to drive out the outlaws while establishing a regulatory framework to allow for industry growth.  Not all jurisdictions, however, have embraced regulating retail FX.  Arguably, the vast majority of developing countries do not have the requisite framework necessary to regulate this industry.  These days, developing nations are busy struggling with the recent economic crisis, and are devoting little time--if any--to regulating the new industry.A few...continued

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