RBA beleives Forex is 'self regulated'

The Reserve bank of Australia believes that Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term (asset class) is a self regulated financial instrument and is functioning effectively.

This is in light of the recent BIS report on High Frequency Trading in Financial Markets.

Some may feel differently as the main regulatory authorises e.g. NFA and FSA have both been dishing out fines to leading names including FXCM and Alpari UK.

Guy Debelle, Reserve Bank of Australia Assistant Governor, states that "The FX market has basically always been self-regulated and still continues to be self regulated. And by in large, I think that's been quite effective,"

High Frequency Trading hasnt directly impacted FX markets like it has in the Dow Flash Crash Flash Crash The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j The Flash Crash was a major stock market crash that happened on May 6, 2010 in which three major US indices crashed in the span of 36 minutes.In particular, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite fell nearly 9% before rebounding within minutes. The event differed from other crashes in that most losses were recovered.The crash was believed to be caused in part by Navinder Singh Sarao, a British financial trader. Sarao was later charged with spoofing algorithms, utilized j Read this Term however speculators suggest the massive fluctuations in JPY and CHF are to be blamed by the HFT.

A report by the EU commission will open more communication on the topic and whether or not any regulations will be in place.

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