Is forex market controlled by someone? - page 5

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Libor scandal: Seven banks summoned in US probe

Seven banks, including HSBC and Royal Bank of Scotland, are to be questioned in the US for alleged manipulation of the Libor inter-bank lending rate.

Barclays, Citigroup, Deutsche Bank, JPMorgan and UBS have also received subpoenas from the attorneys general of New York and Connecticut.

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BBC News - Libor scandal: Seven banks summoned in US probe

 

After reading replies of all members. I have associated query.

Can forex regulatory agencies play a role of central authority to make rules and control forex market?

 

In the past between 2000 to 2006, FX futures being traded on the Chicago Mercantile Exchange always had their big moves preceding the FX Spot market.

For example the GBPUSD move up would happen on the CBOE FX futures before it did on your Alpari broker spot account.

This was mainly due to the fact that brokers would trade on the Futures market to balance their book of business before giving the Spot market the actual trade.

These moves were heavily taken advantage of in the past where spot forex traders were generally losers in the game on a regular basis. However nowadays that's generally reversed! There's virtually no advantage to the FX futures instruments versus Spot.

Reality is that there are windows of trading opportunity that naturally occur and naturally close often due to others finding out about them and then taking advantage. There is no trading strategy that lasts perfectly forever, not even the one above.

FX Market is huge, and those who say that it's too big to be manipulated are half right as for the most part it's too big, but there are pockets of areas and assets that are continuously manipulated everyday.

 
mladen:
The story continues :

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Knight, whose market-making unit executes 10 percent of U.S. equity volume, lost $440 million on Aug. 1 and its stock has plunged 73 percent after a computer malfunction bombarded the market with unintended orders that exchanges declined to cancel. A decade ago, the firm suffered almost no consequences in a similar breakdown when officials agreed to void trades after Knight mistakenly sold 1 million of its own shares.

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In small letters : those were orders that were never meant to be executed

The part of the story that doesn't make headlines with regards to the Knight is that someone or several someones made $440 million on Aug 1 in about 45 minutes. I'm sure we won't hear from the successful participants for fear lest their gains get taken away from them!

 

Forex Market

How big is the worldwide forex trading market?

 
april:
How big is the worldwide forex trading market?

from wikipedia:

According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4]

The $3.98 trillion break-down is as follows:

$1.490 trillion in spot transactions

$475 billion in outright forwards

$1.765 trillion in foreign exchange swaps

$43 billion currency swaps

$207 billion in options and other products
 

Those are huge numbers

I suddenly want to open a brokerage firm. Kidding

 

As far as I know, there is no central authority for world-wide forex market. Each country have their own rules and regulation for forex trading. So, I want to know that it is controlled by someone or not.

 

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Maybe article like this can answer questions like these more than anything else. Just a short quote :

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"Back then, he says, bankers "were well regarded. We were a prestigious industry having good principles."

The recent attempted Libor-fixing scandal, for example, is "disgusting", the former JP Morgan banker says, who also worked as a trader and as a Bank of America manager. "There was no reason to do that. It was just cheap - it's like hitting somebody when they're not looking."

BBC News - How banking culture transformed over the decades

 
ginos1:
i think the forex market is controled by us and by ask and bid and banks economy

Is it only US who controls the forex market? Where did you saw this information? Can you provide me some link?

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