(Bloomberg) Be careful what you wish for — that’s the advice from State Street Corp. to the newest market makers in the $5.3-trillion-a-day foreign-exchange market. Algorithmic trading firm and brokerage KCG Holdings Inc. said it’s accustomed to dealing in highly regulated asset classes such as equities and favors a more comprehensive approach to foreign-exchange regulation to give investors better information about pricing, execution and order handling.
“As nonbank liquidity providers become a more important part of the market, they will undoubtedly draw attention of regulatory authorities,” said Lowry, who’s also the chairman of the Foreign Exchange Professionals Association, a Washington-based industry group. “This is going to be a bigger part of the market infrastructure going forward — be careful what you wish for, because with that comes some interesting potential scrutiny.”
