Is FX going 'on exchange'

The European Commissions proposals to roll out MIFID 2 on 20th October have caused grave concerns for financial markets traders. In particular FX traders and dealers across the industry are concerned that the new rulings which encourage OTC instruments to be traded on exchange or over an electronic platform are not considering the make up of an FX contract.

The European Commission has been under scrutiny for their proposals of the Tobin Tax, major financial hubs including London and Frankfurt believe the tax will drive out business.

The nature of FX in so far as trade size, order Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term mean that it has considerable differences to cash equities. A standardised approach to dealing with all financial asset classes isn't seen as the best approach in dealing with complex instruments.

Forexmagnates will be addressing the Dodd Frank and MIFID 2 in the next quarterly report.

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