Major foreign exchange dealers have established a new representative body to lobby lawmakers over regulatory changes that may impact the industry.
The new body is to be formed by the Association for Financial Markets in Europe (Afme), in co‐operation the Securities Industry and Financial Markets Association (Sifma) and the Asian Securities Industry and Financial Markets Association (Asifma).
The group says it will provide a consolidated voice for the FX industry when working with regulators, stakeholders and other key market participants.
Sixteen of the largest FX houses - representing 85% of the market - have already joined and membership will be open to all sell-side firms and other "strategically significant" institutions.
Afme says it has begun recruiting a managing director to lead the division, as well as other key staff, and plans to be operational at the end of the summer.
Mark Austen, acting CEO of Afme, comments: "Foreign Exchange is the world's largest over‐the‐counter market. An efficiently‐functioning FX market is one of the cornerstones of the global economy and needs to play its part in supporting economic recovery and sustainable growth."
The move comes as politicians and lawmakers turn their sights on the global currency markets following years of benign, light-touch regulation.