Hi everybody,

Today Jean Meneveau, Head of Marketing at Synthesis Bank, sent me the answers of Charles-Henri Sabet, CEO at Synthesis Bank, to our questionnaire we sent to top20 FX retail industry CEO’s.

I want to thank Mr. Sabet and Synthesis Bank for collaborating with FXstreet.com to bring some light to what the future will bring us in the FX business.

Thank you very much

Francesc

Questionnaire:
1 - What is your opinion on the recent NFA regulatory changes? How do you view the implementation of these new measures for FDMs?
It ensures a more professional service offering in margin FX and strengthens the credibility of our industry.

2 - The new proposal also calls for the use of proper and uniform accounting methods and tightens internal controls. Do you think this measure could affect your company’s business in some way?
No, it will not affect our business in particular. Synthesis operates under strict internal controls and regulatory requirements. This is how we have always done business.

3 - Do you think these measures could be a breath of fresh air that may result in more investors joining the FX Market?
It is always a balance but in this case, yes, they are a breath of fresh air. We all have an interest in FX becoming a true asset class and these new measures will strengthen the credibility of our industry.

4 - Switzerland has recently started a similar process, what is your opinion on this?
Our opinion is on line with the of the Swiss Federal Banking Commission recommendations resulting from the observation of several abuses in the field. Synthesis is supporting the SFBC initiative, that recommends, amongst other things a regulated business model for professional FX traders, clear practice policies and compliance applications. In fact, at Synthesis, all the recommendations are already applied and we would have no issues in meeting the SFBC requirements.

5 - Would your company be on the bid side if some firms were not meeting new requirements? What is your company’s policy on the acquisition of smaller firms?
Following Saxo Bank’s acquisition of Synthesis in September, it is not a question for me to answer alone. I believe, however, that Saxo Bank will evaluate this like any business venture we undertake.

6 - How do you see the M&A market in the FX industry? Do you expect important corporative movements in the next months?
M&A does have a significant impact on the industry. However, I do not believe M&A will be able to top the more strategic partnerships.

Take for example Saxo Bank. The bank provides the full technological, trading and risk management application to its partners, including the award-winning trading platform in their own branding. This business has made Saxo Bank the world’s leading provider of White Label Services with over 100 partners globally. Synthesis was actually Saxo Bank’s biggest White Label Partner prior to the acquisition and it is these kinds of strategic partnerships that are more likely to change the industry.

7 - For many, the very business model of FX brokerage firms needs to be debated in terms of whether or not such brokerage houses can take opposite trading positions to those held by their customers; i.e., trading ‘against them’, something which contradicts traders’ well-being. What is your company’s position on this? How do you hedge your customers’ trades?
Our business case has always been to grow our customer base and you can only do that if your clients are satisfied and profitable.

8 - Would you like to add something else?
I would like to end on a positive note. The 2007 BIS survey came out last week and it showed that the FX marketplace is growing like never before. The 70% jump since the last survey in 2004 is the largest ever jump since the survey began. FX is becoming a true asset class.