Godfried De Vidts President, ACI
Godfried De Vidts President, ACI

The healthy future of the FX market as shown by the BIS report

Godfried De Vidts, President of the ACI, looks for the reasons behind the improved market turnover highlighted in the recent BIS 2004 results.

The membership of ACI, The Financial Market Association (www.aciforex.com) are traditionally involved in the foreign exchange markets. Obviously, this is only part of the professional occupation of many of our members as money market and all related products like Overnight Index Swaps, Futures and Repurchase Agreements are actively traded by many. The introduction of Basle 2 is a challenge for this market segment similar to the challenge the foreign exchange markets faced a few years ago.At the time of the release of the Bank for International Settlements (BIS) Triennial Survey of market FX turnover in 2001 volume was well down from previous peaks. The creation of the Euro in 1999 was most likely the major factor at the time as the currencies of the member states adopting the Euro left traders without the fuel for trading in the legacy currencies. For many years the pre-EMU tensions highlighted with the troubles around the British Pound provided a royal income for the dealing rooms around the world. At the...continued

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