GFMA Submits Comments to European Commission on a Consultation on Derivatives and Market Infrastructures
16 July 2010
The Association for Financial Markets in Europe (AFME) welcomes this consultation paper from the European Commission on derivatives and market infrastructures, and appreciates the opportunity to respond. AFME’s Foreign Exchange (FX) Division comprises 21 global FX market participants, collectively representing more than 85% of the FX market.
The FX market is the world’s largest financial market, and effective and efficient exchange of currencies underpins the world’s entire financial system. As many of the current legislative proposals may have a significant impact upon the operation of the global FX market it is vital that the potential consequences of regulatory changes are fully understood, and that new regulation improves efficiency and reduces risks, not vice versa. The following comments summarise our observations on the points within the consultation paper that are of particular relevance to the FX market.