Latest developments in the FX Markets: The impact of current regulation and insights into future market evolution
FX markets are a key part of the global economic activity and the largest financial sector by value (trading in foreign exchange spot and OTC derivatives averages over 5.3 trillion dollars per day). As other major financial markets, its activity has also seen high levels of regulatory scrutiny: from Dodd-Frank to EMIR or MiFID II there is now a waterfall of reporting and processing requirements to implement. The associated costs of such requirements is seen as a strong incentive to turn to more standardised contracts that are eligible for clearing and multi-lateral netting but at the same time require margins, contributions and default fund obligations. In an environment where trading volumes continue to grow a more fundamental review of the entire post-trade processing chain, up to settlement, needs to be undertaken. Join our panel of experts to discuss the present, the last few years and the future of FX markets.