The troubled foreign exchange industry convenes this week in Berlin after months of claims that members colluded to manipulate exchange rates, something the threatens its much-advocated for self regulation model.
The ACI, which is the main professional association for traders in the world’s largest individual financial market, will hold its annual meet at a time when the industry is facing tumultuous times, with dozens of its key members either dismissed or suspended.
The congress will discuss how to approach the allegations that top traders schemed to manipulate the benchmark exchange rates. The ACI is of opinion that its Model Code of Conduct for traders will help the industry move with speed before authorities start pushing for regulation of the sector.
“The banks’ main concern here is that it will provoke a stiff reaction from regulators that says everything in this market will have to change along the same lines as the changes we have seen on credit and equities markets,” one unnamed foreign exchange dealer told Reuters. “They are thinking about what can be done to avoid that.”
Senior bank managers and other professionals will on Wednesday and Thursday hold a series of closed-door meetings, before holding public sessions on Friday.
Eurobase executive David Woolcock, who chairs ACI’s guidance committee on professionalism, said the meeting will discuss fixings, which however won’t be the main agenda.
Most industry practitioners are afraid that they may be dragged into court cases that may spell an end to their careers. This fear has already seen the Bank of England shake up its top management.
Early signs also show that the ACI will appoint Marshall Bailey, a former State Street executive, as its first full-time president.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org