With FX volatility now rising rapidly our three fintech entrepreneurs were planning how to disrupt the Foreign Exchange market (the only financial market that runs for 24 hours per day) with a revolutionary ‘follow-the-sun’ app. They were planning to set up a global, low-cost, transparent, real-time, digital, blockchain exchange staffed by robots.
The American Foreign Exchange Committee (FXC) has issued one of its letters last week addressed to all “Market Participants”. The FXC is an FX industry group that has been providing guidance to the market since 1978.
In today’s banking industry many organisations are finding it increasingly challenging to meet the transparency requirements imposed on them. It arguably feels like a fusillade of bullets coming from all sides. Central banks, regulators, internal requirements, auditors, and others, are all imposing their own compliance and risk practices, to which banks must adhere or face the consequences and potentially pay a hefty price in regulatory fines.
How can technology support the principle of ‘fair and effective markets’?
In my last blog on cross border payments I was mulling the concept of “fair and effective” markets and musing how that would apply to the current landscape of high bank charges in this area. The original blog was inspired by a newspaper article that was expressing outrage that a bank was discriminating against smaller corporates (SME’s) on a systematic basis.