Manfred Wiebogen President ACI  The Financial  Markets Association
Manfred Wiebogen President ACI The Financial Markets Association

FX - Remaining resilient in the midst of crisis

The crisis came and the crisis went and FX kept on functioning well. Even at the peak of a once in a century crisis, it carried on performing. More astonishing, it shows increased resilience and keeps on attracting new market players.

The largest and most liquid market in the world keeps on growing. The Bank for International Settlements (BIS) will announce an updated figure of the global average daily turnover in foreign exchange, in a few months time (April ’07; USD 3.2trillion). As at April 2009, the daily turnover reported by the six largest currency markets was estimated at around, USD 2.55trillion. Should we assume that the activity in these markets is representative of global activity, it may be possible that the global daily turnover has increased again by a few more hundred billions.The FX market is predominantly an over the counter (OTC) market and scarcely regulated. From an EU perspective, spot and forward transactions which are not considered as derivatives (e.g. for commercial purposes) fall outside the scope of Markets in Financial Instruments Directive (MiFID).MiFID came into effect towards the end of 2007, and the Committee of European Securities regulators are expected to announce MiFID II later on this year. Even...continued

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