Watch: The FX Rigging Scandal a Year After: Lesson Learned?

Over the next week we will be presenting a series of videos of the speeches and discussions featured at the London Summit 2015. If you were unfortunate enough to miss the summit, or did attend but missed out on a particular session, this is your chance to catch up.

In 2014, fines totaling billions of dollars were levied upon major banks as penance for manipulation of FX and Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term rates. How has this affected the trading industry? In the aftermath of these events, have enough changes been made? The first panel discussion that we are presenting is a fascinating discussion about this controversial issue.

The panel featured a group of trading professionals who between them have decades of experience working in the finance industry, and was chaired by Adil Saddiqui, a longtime Finance Magnates editor.

Adil began the discussion with this introduction:

"The FX rigging scandal is something that we don't really want to talk about as FX is becoming a recognized asset class. Nonetheless, it happened, it's in the public domain, we've seen banks, bank traders and a lot of participants being fined and being censured for it. What we're going to look at today is how how this event has impacted the market and where we are now."

A lively conversation was had by the panel of experts, and the prognosis was generally optimistic. Stephen Leahy, COO of FXPrimus, said: "The market for retail FX is competitive enough and there's enough transparency about how brokers operate that if you put in some really bad practices I don't think it's going to last long or work very well for you."

Peggy Reed, the SVP of Ayonda, said: "I do think that the informed investor has to ask the right questions... I think this whole issue has created more of a level playing field and so I am glad to see that there is not such a gap between the wholesale and the retail market now."

Gil Neihous, founder and CEO of Fluent Trade Technologies, stated that "...technology is the answer for some of the challenges in the market..."

David Woodlock,Chair of the Committee for Professionalism - ACI, who volunteers his time and is responsible for writing The Model Code, said: "Personally I'm very optimistic on the future of the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market. It's attracting new entrants, it's regarded as an asset class, it's volumes are holding up well where other volumes elsewhere aren't. I think that what has come out of this episode is that there's a renewed focus on running a fair and efficient and effective foreign exchange market and as long as all firms and all participants in the market go along with that....we will continue to see good growth."

Watch this informative discussion in the embedded link!

Watch the rest of the Summit's content here.