FX Marketspace conference call text.

Discussion in 'Forex' started by ddunbar, Jun 23, 2006.

  1. ddunbar

    ddunbar Guest

    It's going to be headquatered in London. Not sure about the NFA's reach there. (Matter of fact, they don't have any jurisdiction there.) Besides, the NFA regulates US brokerages. This thing is just an order matching platform with centralized clearing service, not a brokerage. And it's not an exchange in the classcial sense either. Therefore, global participation is highly likely. Especially because of the multilateral credit and clearing it's provide.

    The goal of it is to bring as much of the unregulated business under one roof. It's cost effective enough to be attractive to most participants. Nevertheless, the Spot market will remain unregulated even when this thing becomes established. In a way, if enough participation ensues, it'll make a sort of "synthetic self-regulation."

    The problem with Spot Forex today is the small amount of counterparties. We're at the mercy of major liquidity providers such as DBK, RBS, UBS, CITI, ect. Imagine if Joe Schmoe from Cucamunga has 200,000 Euros to sell. And Johann Doeschmitt from Dresden is looking to buy 200,000 Euros. With something like FX Marketspace, they could trade with each other via their respective brokers who provide access to FXMS without having to first transact with the Major dealing banks (Liq Prov). Or as the case actually is for non- ECN type ... transacting with their Market makers (bucketshop) who in turn transacts with Dealing banks.

    No more requotes or failing to honor quotes. Orders matched, trade centrally cleared. Pricing will be interbank or better. Best bid/ask will be known to all participants.
     
    #11     Jun 24, 2006
  2. To me, it smacks of just another way to try to run off the retail forex traders.

    banks trade amongst one another. retail traders' brokers trade with each other.

    two completely different pricing/quoting platforms.

    the big guys want the retail traders OUT because many of the retail level traders continously kick the bageebers out of the "pros" who trade at/for the interbanks.

    Just like the scenario in NASDAQ in the early 1990s.

    we were better traders than the big traders - they figured out ways to ban us.

    same deal here.

    my question is... what will become of good forex brokers like Oanda?

    DD
     
    #12     Jun 24, 2006
  3. sccz97

    sccz97

    There's no doubt that there are ways to beat the banks and since noone wants to be a sucker, of course they will take action. But your sentence implies that you are part of that group to which I just referred. Somehow, with your knowledge of the fx market, I doubt that very much.
     
    #13     Jun 24, 2006
  4. You sayin' you have to know a lot about the forex market to make winning trades???

    LMAO

    Good one, Sccz97.

    Seeings I open and close dozens of winning trades a week, and I don't trade techs, fundamentals, charts or even rate quotes... I disagree with what you're stating.

    The dRaWdOwN
     
    #14     Jun 24, 2006
  5. sccz97

    sccz97

    lol, you really are quite the most irrelevant person I've had the misfortune to come across
     
    #15     Jun 24, 2006