Eddie Tofpik: Beware Snake Oil Salesmen and Get Your Regulation in Order!

Have the repercussions of the Brexit taken their toll and how will regulation affect industry consolidation?

The Finance Magnates London Summit is almost here, with the industry’s biggest names coming together for one of the biggest events of the year. As a primer for the event, several speakers have provided a glimpse into their agendas and priorities.

In our latest installment, Eddie Tofpik, Head of FX at ADM ISI, lends his perspective on the many parents of Brexit, as well as the brewing regulatory storm. Eddie is an avid Summit goer, and it gives us a special pleasure to have him on stage.

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What is your position and what does your role entail?

I am Head of Foreign Exchange for ADM Investor Services International Limited (‘ADMISI’) and have held that role for 25 years growing a 24 Hour FX Dealing Desk from just myself to an FX Team responsible for trading around the clock from London. In that role I oversee the FX operations in Spot, Forwards, NDFs & EFPs of ADMISI both with existing & potential clients but also with our FX Counterparty Banks. I also produce market information analysis and act as the FX ‘face’ of the company.

What was the single most important event or development that the market saw in 2016?

Get your regulatory house in order and you will see that nontoxic business will come

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Without doubt it is Brexit, through the run up, the event itself and now…the aftermath. I think you can trace the origins of this event back to the backlash we saw against established orders started by a man at the end of his tether in Tunisia. It is still continuing…not only in Europe but also in the U.S.

We’ve given it the name ‘Brexit’ but it is the product of many parents and it’s children still are being borne And are growing up. This is not something that will go away next year or the year after…but may likely last a long time.

What are the biggest challenges that the FX trading community is facing? How do they affect your field?

Regulation without a doubt! What changes are coming into force under MIFiD2, the clearing of FX transactions and margining between counterparties. What it means is the cost of doing business will inevitably rise…again!

The effect is to lead to a ‘concentration’ of risk within a few hands and the reliance that we…all of us… have faith in new regulations that will stop or at least slow any sudden global impact from other markets that feeds through & hits FX. Well…good luck with that one!

What is the main message you’d like to convey to London Summit delegates?

Get your regulatory regime sorted out…anyone can get business…it is a matter of keeping it that is the issue and I don’t mean from legitimate competition. There are plenty of charlatans posing as legitimate brokers in our industry when all they are is snake oil salesman. Don’t be tempted by them, of doing business with them or joining them. Get your regulatory house in order and you will see that nontoxic business will come…if you build it right…then it will come.

Eddie Tofpik will serve as a judge of FX Factor, an institutional FX product pitch which will take place on November 14th. Learn more here

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