3 Jan 2011
Move on from uncertainty to build a new business environment
David Holcombe was one of the industry experts that FX/MM magazine asked to suggest new years resolutions for the FX market. Read his contribution here...
"It is clear that 2011 will be a milestone year for the FX market, with regulatory change and an uncertain economic landscape sure to make it a challenging environment in which to thrive. But for 2011 to be successful there is only one resolution that matter... the regulators need to consider, decide and mandate.
The FX market needs to move on from its uncertainty with binary opinions about the scope of forthcoming regulation - which participants, provides, venues - so we can all move into the build phase of actually establishing new business practices and infrastructure to support emerging regulation.
The regulators need to make the right decisions. They have to look and learn from the upheaval that the equity market has gone through and consider potential unintended consequences of mandated change. They need to really understand how the FX market works now and ensure their decision are market not politically focused; the FX market is different to the Credit market so don't mandate FX swaps just because "Swap" is in the title. Dont mandate swap execution facility just to align regulation. Only mandate clearing when it improves the existing process. And above all, give the market time to spend 2011 safely establishing its new way of doing business."
