Barclays’ Chairman has warned against strict controls on forex trading, fearing that enforcing tight regulations could “spoil” the market
At an event this week, Barclays Chairman Sir David Walker rebuked concerns that the forex market needs a regulatory overhaul, arguing that it simply needs a bit of “fine-tuning”.
The Chairman’s comments came at a gathering to announce the creation of the Barclays’ Compliance Career Academy, a programme – designed in partnership with Cambridge Judge Business School – aimed at promoting industry compliance standards.
[C]alls for stricter ties on trading have raised concerns among some experts that the forex market could suffer as a result
The initiative is evidence of the bank’s commitment to regulatory compliance, and couldn’t have come at a more important time as many of its ilk – itself included – are subject to ongoing investigations surrounding forex market manipulation.
“Working together, Barclays and Cambridge Judge Business School have created a programme that is world-leading and will take Compliance to a new level,” said Professor Dame Sandra Dawson of Cambridge Judge Business School in a press statement.
“There is some very intelligent, sensitive fine-tuning needed, but we should be wary of throwing the baby out with the bathwater,” said Walker of the forex market, as leading figures at the bank gathered to discuss the creation of the academy. “I’m sorry to say that there will be accidents from time to time,” he added. “They are not evidence of the failure of what we are rolling out. They are indicative that it takes time. We always have been very clear some of this stuff will take five to ten years.”
Over 15 regulatory authorities are currently investigating alleged collusion and price manipulation in the forex market. However, calls for stricter ties on trading have raised concerns among some experts that the forex market could suffer as a result.
Walker argues that the emphasis for regulators should fall instead on traders, who must be made to conduct trades in a responsible manner and in accordance with the regulations that stand. Any attempts beyond that to enforce tighter controls could, according to Walker, “spoil” a market that runs smoothly, aside from a select few exceptions.