Managing Compliance and Surveillance in the FX Spot Market

2 March  2021

The FX market is evolving as rapidly as cryptocurrencies have arrived on the scene, so the interest in FX has grown in step with that.
New traders are contributing to market liquidity, trading is increasingly taking place on electronic channels and the fragmentation of trading venues has probably reached a peak.
In the absence of a structure based on regulated markets or specific legislation, FX participants created a code of ethics to ensure an orderly market.
ESMA has recently also adopted the FX Global Code as a baseline.
We will illustrate here that an automated surveillance system’s implementation for FX spot can in part be borrowed from experience in MAR regulations, but it still presents unique specificities and issues, which, based on our experience as global compliance technology providers.