HMT's Hoban: Beware of sweeping forex into EU derivatives reform
Advocates of an exemption from mandatory central clearing requirements for foreign exchange swaps and forwards have won the support of the UK government, as a senior treasury official admits to the risks inherent in regulating FX in the same way as other over-the-counter derivatives.
Financial markets are diverse and a one-size-fits-all approach to market regulation won't always work, warned Mark Hoban, financial secretary to the UK Treasury, in his keynote address at the European Market Liquidity conference in London on February 3, organised by the Association for Financial Markets in Europe.
"I just think there is a big risk that we assume what might be appropriate in one
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