UK Government Mulls FX Oversight
![London London](/sites/default/files/styles/landscape_750_463/public/import/IMG/234/284234/london-city-web-580x358.jpg.webp?itok=SoA8timA)
Osborne is expected to announce these measures on June 12, according to a report from the BBC. The FX market, which has a roughly $5 trillion per day turnover, is centered in London, given its location as a bridging point between the US and Japanese time zones.
The moves come on the back of several years' worth of scandals that have rocked the industry, including manipulation of interbank offered rates on a global basis, along with alleged market abuse relating to the benchmark rates, or fixes, set at 4pm in London.
The UK authorities will be working with the Financial Stability Board (FSB) to enact these reforms. Some of these will likely include an expanded use of electronic platforms, changes to how prices are calculated, and enacting a professional code of conduct for FX traders.
"Osborne's plans to provide transparency and regulation to FX markets are long overdue," says Matthew Coupe, director of regulation and market structure at surveillance specialists Nice Actimize. "We should be mindful that increased regulation does not close all avenues to evil. And it should be remembered that rushed regulation is the worst thing that can happen as it is never thoroughly thought through. If Osborne moves FX trading to more electronic markets, this can only provide greater transparency and greater ability for oversight.
"The FX markets operate through a number of different channels. The electronic market is one channel but it is not the answer to all problems. Over-the-counter markets still provide an exceptionally useful tool for execution, if regulated and supervised in the right manner, and holistic surveillance controls are put in place to monitor it," he continues.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Off-channel messaging (and regulators) still a massive headache for banks
Waters Wrap: Anthony wonders why US regulators are waging a war using fines, while European regulators have chosen a less draconian path.
Banks fret over vendor contracts as Dora deadline looms
Thousands of vendor contracts will need repapering to comply with EU’s new digital resilience rules
Chevron’s absence leaves questions for elusive AI regulation in US
The US Supreme Court’s decision to overturn the Chevron deference presents unique considerations for potential AI rules.
Aussie asset managers struggle to meet ‘bank-like’ collateral, margin obligations
New margin and collateral requirements imposed by UMR and its regulator, Apra, are forcing buy-side firms to find tools to help.
The costly sanctions risks hiding in your supply chain
In an age of geopolitical instability and rising fines, financial firms need to dig deep into the securities they invest in and the issuing company’s network of suppliers and associates.
Industry associations say ECB cloud guidelines clash with EU’s Dora
Responses from industry participants on the European Central Bank’s guidelines are expected in the coming weeks.
Regulators recommend Figi over Cusip, Isin for reporting in FDTA proposal
Another contentious battle in the world of identifiers pits the Figi against Cusip and the Isin, with regulators including the Fed, the SEC, and the CFTC so far backing the Figi.
US Supreme Court clips SEC’s wings with recent rulings
The Supreme Court made a host of decisions at the start of July that spell trouble for regulators—including the SEC.