In view of the recent FOREX and LIBOR scandals, EuroFinUse finds it astonishing that the media are not paying attention to the fact that the largest market of all - the currency exchange market - is not regulated at all and has been completely overlooked by the European Institutions and regulatory bodies.
Rapid steps to achieve EU legislative control of benchmarks applied to foreign currency exchange markets could be achieved by a last-minute modification to the MiFID/MiFIR packages, an institution representing retail investors suggests.
The subject of Forex and legislation recently came into focus following news reports of investigations into possible manipulations of relevant bench marks. The MiFID/MiFIR suggestion would bring the whole field under control, not just the benchmark issue. At present the trading sector is not controlled.
Guillaume Prache, head of the European Federation of Financial Service Users (EuroFinUse), says that a modification to the packages covering markets in financial services would fill “a gaping hole”.
Please read EuroFinUse press release here.