FX Self Regulation Works In Spite Of Scandals, Says Fed Advisor
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Derivatives

FX Self Regulation Works In Spite Of Scandals, Says Fed Advisor

In spite of recent scandals raising doubts by some over the effectiveness of self regulation in the foreign exchange markets the industry is overwhelmingly transparent and any attempts to regulate the asset class would create inefficiencies, according to Mark Snyder, chairman of the foreign exchange committee that is sponsored by the Federal Reserve Bank.

In spite of recent scandals raising doubts by some over the effectiveness of self regulation in the foreign exchange markets the industry is overwhelmingly transparent and any attempts to regulate the asset class would create inefficiencies, according to Mark Snyder, chairman of the foreign exchange committee that is sponsored by the Federal Reserve Bank. The foreign exchange committee comprises representatives of U.S. fx dealers and serves as a channel of information among market participants and the Fed.

Recent foreign exchange scandals including National Australia Bank's trading losses and allegations by the Federal Bureau of Investigation that a New York-based fx operation defrauded investors, has led to criticism over the regulation of the market, Snyder noted. These examples, however, do not represent the industry, which is transparent, efficient and appropriately priced, he said. Enhanced regulatory intervention in the market, could not guarantee the absence of problems. For example, the mutual fund industry is one of the most regulated marketplaces and yet has suffered from widespread insider information scandals and illegal trading. New intervention by regulators into the fx market would likely result in higher costs and would produce an expensive and inefficient market, he argued.

Related articles

Gift this article