Forex failures caused by over-regulation, lawyers say

Sharon Bowen, from the Commodity Futures Trading Commission, issued a statement on January 22 arguing that the retail FX market was the least regulated part of the derivatives industry, following the shock move on January 15 by the Swiss National Bank to abandon the Sfr1.20 euro/Swiss franc exchange rate peg. However, lawyers argue that retail FX is one of the most heavily regulated sectors, which may in fact be increasing risk.