Why is there no spot currency exchange?

[DrChaos]

After all the angst in this thread, why is there not a centralized, regulated exchange for spot currencies?

I know about the futures but as people tend to primariliy think about the spot rate, why not have a true, spot instrument traded on an honest exchange with the usual guarantees.


Are there technological or regulatory complexities? I would have imagined that the global demand would be large and an exchange would be eager to set something up to compete for liquidity and fees.

Are there economic complexities with the swap? I imagine this could be resolved satisfactorily if need be.

Why not make them like futures which expire each day?

 

[bighog]

Ever hear those things called BANKS. International banks control the mkt.

 

[murfy_kl]

Yes, the international banks control everything

 

[riskarb]

Well, there is EBS:

http://www.ebs.com/about/facts.asp

 

[Deptrai]

Quote from DrChaos:

After all the angst in this thread, why is there not a centralized, regulated exchange for spot currencies?

Chaos, here is the answer to your question. Regulation invites government control. The system was set up so there would be no government control. This system comprised of banks and forex brokers moves around the globe with the sun. Each moneycenter voices its opinion so to speak with the buying and selling. It is truly a free market.

Regards,

Deptrai

 

[jaketrader]

Quote from riskarb:

Well, there is EBS:

http://www.ebs.com/about/facts.asp

also look at www.currenex.com or www.fxall.com

 

[ElectricSavant]

Citibank would need to approve of this...they need an unfair advantage, and they can't make any money this year with it....

If I was one of the masses of currency traders there, I would feel embarrassed as to my teams results...I read somewhere, that all the banks did not make money this year in currencies...

shame on you Citibank

 

[DrChaos]

There are regulated stock exchanges and futures and options exchanges.

Most participants like this because this way they are less likely to get ripped off.

There are now 24 hour futures, right?

Still, I would imagine that the exchanges are themselves profit making enterprises and so why hasn't somebody attempted to get some volume by making an instrument on a regulated exchange---one with no funny rules, no stop hunting, shading, etc---one identical to OTC spot forex economically?

Another question:

how does a trader sign up for 'currenex' access?

I went to the site and they appear to be selling software.

 

[late apex]

Quote from DrChaos:

Still, I would imagine that the exchanges are themselves profit making enterprises and so why hasn't somebody attempted to get some volume by making an instrument on a regulated exchange---one with no funny rules, no stop hunting, shading, etc---one identical to OTC spot forex economically?

Somebody has...

1. CME (1972)
2. Eurex (2005)

 

[jaketrader]

Quote from DrChaos:

There are regulated stock exchanges and futures and options exchanges.

Most participants like this because this way they are less likely to get ripped off.

There are now 24 hour futures, right?

Still, I would imagine that the exchanges are themselves profit making enterprises and so why hasn't somebody attempted to get some volume by making an instrument on a regulated exchange---one with no funny rules, no stop hunting, shading, etc---one identical to OTC spot forex economically?

Another question:

how does a trader sign up for 'currenex' access?

I went to the site and they appear to be selling software.

You would need to get a clearing arrangement with your broker, www.pfgbest.com does it and you need at least 100k , try also www.propfx.com