The Finance Hive Live: FX Leaders Summit – London 5th June 2018

The Hive Network held a very successful event in London in June where 50 of the largest buy side firms based on Assets Under Management were talked through the issues that are currently influencing the FX industry including:

First Published: e-Forex Magazine 81 / Recent Events / July 2018

AI and Blockchain - a bubble that’s going to burst?

Speaking at the event, Dave Cliff, Professor of Computer Science at the University of Bristol described the clamour to buy shares in blockchain as “insane”, but suggested that what new technologies like AI and Blockchain can bring to the FX market is a reduction in friction at a critical turning point for the industry. 

Regulations – MiFiD II and the Global Code of Conduct

Are the regulations adding value to clients? General consensus at the meeting suggested that they are not.  Many argued that the regulations were a poor fit with the FX industry, and need to evolve quickly if they are to have a positive impact on the market. It was commonly felt that the Global Code presents a better opportunity to improve FX for clients but its full impact remains to be seen. 

Regulations – MiFiD II and the Global Code of Conduct

Transparency – benefitting customers or the competition?

Many agreed that clients today are savvier in their FX interactions: they want to know more about each transaction and how it is managed. In this sense, customers do now have better information available to them thanks to recent regulations, especially in terms of framework and expectations. 
Yet the question remains whether regulations are creating more transparency for customers, or for competitors. 

TCA – will it really change the FX trade of tomorrow?

Global standardisation appears to be one of the biggest issues in Transaction Cost Analysis: without it, it becomes difficult for FX professionals to create an accurate TCA report.  Many agreed that there is a real need to establish common benchmarking and industry standards for TCA to effectively influence the FX industry and justify the costs it incurs.

TCA – will it really change the FX trade of tomorrow?