Manfred Wiebogen President ACI, The Financial Mark
Manfred Wiebogen President ACI, The Financial Mark

From FX Regulation to FX Taxation

The financial markets have never before seen so many reviews looking at fresh ways to regulate. Although Regulation and Taxation may no longer be real news to us, the frequency and attention given to the topic in public discussion is increasing.

No exemption of FX Derivatives in Europe EMIR (European Market Infrastructure Regulation) – is the European response, seeking ways to make the derivatives markets safe and transparent, (also regarded in some parts as a counterpart to the US Dodd-Frank Act). A newsworthy statement recently given by Steven Maijoor, Chair of ESMA (European Securities and Markets Authority), whilst attending a Liquidity conference in London in February, said that, ESMA is not calling for an exemption of FX derivatives as envisaged in the US! Therefore margin requirements for non-central clearing will apply in the European Union! Wow, like Basel II and/or Basel III, MiFID or the possible implementation of a European Financial Transaction Tax; another solo attempt by Europe to pay the bill. Single Settlement risk is today’s risk from the clearing obligation for FX derivatives. Concentrated Placement risk of securities held by CCPs margin requirements will be the future risk, once the world’s largest OTC market...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here