Godfried De Vidts President ACI
Godfried De Vidts President ACI

Retail participation in the FX markets: a challenge for the regulators and a threat to our jobs?

Godfried De Vidts looks at the advantages that the FX market offers retail investors.

Two subjects, among the many that are discussed in our industry, are most topical at present: regulation and the potential loss of dealer positions in the FX industry due to high frequency trading. I’d like to cover regulation first, where it’s important to distinguish between retail FX regulation and regulation of the professional market.As the regular travellers through London City airport may have noticed, FX is increasingly marketed by professional retail companies with big advertisements. A large part of the advertisement is actually a warning to the potential retail traders that there are risks involved in trading foreign exchange. A few years ago domestic currencies disappeared to make way for the new European currency, the Euro; and just when most people get used to travel throughout Europe and beyond with the unified currency, billboards arrive to announce the possibility of making transactions in this financial market segment. So it’s not really...continued

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