Francesc Riverola,
Retail forex regulation: Still a work in progress
By John Sandman
Futures Magazine
For an industry that’s often viewed as under-regulated, retail foreign exchange traders in the futures and options market face significant new regulation and there is more on the horizon though it is not clear what form it will take.
“The retail FX market may indeed seem like the Wild West,” said Sang Lee, managing partner at the Aite Group, a Boston-based consultancy focusing on technology and regulation in financial services. “But most of the large retail players are Commodity Futures Trading Commission (CFTC)-registered FCMs [Futures Commission Merchants] and members of the National Futures Association (NFA). Having some sort of regulatory stamp of approval will enhance the overall growth of the market as it provides certain levels of regulation, leading to more legitimacy in this rapidly growing market.”
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