In my column of November 11, 2013, I argued FX “needs a hero” – leadership to counter the negative narrative that surrounded the industry. Thanks to those that delivered the Global Code, we received that leadership, but the work is not done – in fact it is now more needed than ever, so it’s time for today’s leaders to step up and explain why pre-hedging is important. Along the way it will help Mark Johnson, but equally as important, it will help the entire industry.
Tag: flash moves
Does the FX industry want to continue along the road to modernisation, or has it gone far enough? Answering this question is the starting point for the issue I want to discuss, because there is a push out there for same-day and then instantaneous settlement of “spot” FX transactions, but at the moment who would want to be involved in that? All it would take is one slightly contentious move and one large barrier or stop executed and we would be in a pile of trouble.
Let’s start 2018 on a positive note – happy new year everyone. Now…let usual service resume. I don’t know what happened exactly on December 25 when 99.9% of the FX market was shut down, but whatever it was, we probably need to do something about it, because I can’t see how it can be a good thing when the world’s most liquid currency pair decides to spend four hours trading (very occasionally I am told) some 350 points below where it closed.
Putting aside all jokes about the UK’s disappointment at losing their “dumbest electorate crown”, I’ll keep this brief because the world is still coming to terms with how the “experts” once again got it hopelessly wrong. So just to say yes, the FX market was very orderly yesterday as the results came in but (there’s always a ‘but’ remember), we are in no way out of the woods. For just as this was a eerie echo of Brexit, so too could market behaviour be in the coming months.