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 FX Global Code – Is Self-Regulation the Future of the Industry?Go to article >>
The nature of FX in so far as trade size, order execution and liquidity 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.