RegTech in FX: Closing the gaps between regulatory intention and interpretation

The month of September will mark the 9 year anniversary since the 2009 G20 Pittsburgh meeting which established the framework for new derivatives regulation, leading to a fountain of new rules being established across different regulatory jurisdictions for financial institutions to follow.

First Published: e-Forex Magazine 76 / Reg Tech / June, 2017

The FX market has been among those asset classes burdened with a mountain of regulatory change, in areas such as central clearing, order execution, price transparency, trade reporting and business conduct rules. Some parts of the FX market, such as spot FX, have been exempt from many of these new regulations, but the recently released Global Code of Conduct on May 25th has also established a set of principle-based guidelines to help reshape the way the markets and the people within them operate. While trade execution requirements, central clearing and regulatory trade reporting, amongst other rules, have been established in the US already through the Dodd-Frank Act, in Europe, the revised Markets in Financial Instruments Directive and its accompanying regulation (Mifid II and Mifir), is only set to come into force in January, 2018, and will cover many of the same rules that have been introduced in the US and in other regulatory jurisdictions around the world.  The new rules and principles mean that...continued

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