Inside View

Failure to adequately prepare for the LIBOR transition could lead to significant risks for firms as contracts transition to alternative reference rates. As such, there is potential for the underlying value to shift from one party to another.

The iFX EXPO will take place at the exclusive 5-star Grand Hyatt Hotel, Dubai from 19-20 May 2021 connecting high-level execs in the fintech space. Today, Charlotte Day, Director at Contentworks Agency – a media partner of the expo, caught up with Sarah Henry from organisers Ultimate Fintech to get the lowdown on the first LIVE event in over a year!

Alan Greenspan, the ex- U.S Federal Reserve Chair, once remarked “The number one problem in today’s generation and economy is the lack of financial literacy.” Whilst he was predominantly centering this towards the United States, the statement is certainly true for those in Africa. Financial Literacy rates must be improved across the African continent- and fortunately there has never been a better time to take up the challenge.

ASIC’s leverage restrictions for retail CFD trading triggered a lot of interest from clients willing to switch to pro status. The complexity of the procedure has quickly extinguished the potential to retain key trading volumes for AU-based brokers as traders are looking elsewhere to establish pro accounts.

“I have said from day one, I am not an expert in crypto nor a securities lawyer, but it doesn’t take an expert to see that plenty is very wrong, very corrupt and very outrageous about the SEC’s lawsuit against Ripple. I hope that clarity is on the horizon, but I fear that for the retail holders represented in our case the fight has just begun.”

“Even though I’m a pro-crypto, pro-Bitcoin maximalist person, I do wonder whether if at this point, Bitcoin should also be thought of in part as a Chinese financial weapon against the U.S. where it threatens fiat money, but it especially threatens the U.S. dollar.”

For many years, Australia has been a bastion of high quality and good leadership within the FX industry, but the regulator has had an almost equally longstanding unfair disdain for margin brokers. Next week, the new draconian rules come and it is time to equip your brokerage for sustainability.

Mr. Stankiewicz pointed to Binance’s mixed reputation in the industry especially with regards to its compliance efforts. According to Forbes, an internal whistleblower denounced the exchange’s practices of aiding US customers in circumventing its own internal controls, to help funnel these customers – and their associated revenues – to the main Binance exchange.

“Deliverable crypto is a different matter. When crypto exchanges start being regulated and offering reliable connectivity, brokers still have to make sure that their aggregation software is able to handle cryptos and their infrastructure can ensure timely delivery. Moreover, counterparty risk remains much higher than with a regular forex LP”, said Ms. Zakharova.

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