CFTC’s Gary Gensler gave an interesting speech a few days ago where he discussed the future reform of the OTC Derivatives Market. While he didn’t specifically discuss Forex it is probably one of the products that this proposed reform concerns.
OTC Derivatives – are called this way because there is no central exchange for their trading, therefore they are traded Over the Counter, that is typically not between a seller and a buyer but rather from a corporation that issues these products. It also acts as a counter-party in such trades which is the most problematic issue of them all.
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What you will find below is a very simplistic explanation of the OTC market and the reasons behind the proposed reform. It is still an interesting read and one of the outcomes of this reform can easily be a creation of a forex marketplace for US FCMs.