Marshall Bailey CFA , President, ACI – The Financial Markets Association
Marshall Bailey CFA , President, ACI – The Financial Markets Association

The only constant is change, (and ethical standards)

The fines have been levied, compliance officers hired, and outside counsel engaged. Has anyone counted the total cost? The FCA has blown their referee’s whistle, and the whistle has blown to start the new round of market activity, with a tighter oversight of standards. The banks who have been paying attention to culture, have trained their staff and maintained controls, have fared relatively better. They have certainly picked up business. But is that it, now? Job done?

First Published: e-Forex Magazine 59 / Foreword / January, 2015

Of course not: markets are constantly in flux, and we should welcome it. Let me make three important points: 1) Markets are always in transition There has been a complete change of macro structure within our lifetime. Consider the following: some have been Policy driven, such as the Gold standard/fixed rates movement to free rates, which has facilitated tremendous global growth. Some have been Technology-driven, such as the evolution from the Telex machine, telephone, adoption of on-line systems such as Reuters matching to EBS, and onward to HFT, or Client-driven, from the need for bi-lateral credit but multilateral pricing, consolidation/concentration, focus on (e.g.) TCA.   Others have been innovation-driven: e.g. the creation of CLS, central clearing products & services for PB and NDF, while relatively few have been driven by regulation: Dodd-Frank, SEFs/OTFs, conduct reviews. In fact, for a long time the regulators left the FX market alone, because they trusted it.2) A healthy market...continued

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