There is too much FXCM discussion after the infamous FXCM CFTC US Market ban. Today we speak with Larry McGonegal, Forex industry expert and FXCM old-timer. Moreover, we present to you a short Settler Trading review discussion.
11 May, AtoZForex – Forex industry is going through a number of fundamental changes. Where regulators are issuing new guidelines and requirements, the sector is also developing from within. One such development is the newest trend among Forex brokerage sector – firms specializing in providing certain services for Forex market participants.
Forex industry reforms
While this tendency is relatively new to the sector, many of the brokers already are utilizing the opportunity. For instance, some of the brokerages prefer to outsource their dealing desks or risk management departments.
In addition, some industry experts believe that the new MiFID II regulations that come into force in January 2018 will change the way how Forex broker do the business. Some suggest that the requirement to have their own dealing desk might become invalid in the future for Forex brokers. The upcoming MiFID guidelines will oblige all the financial derivatives firms to publicize their trade data. Thus, the reporting responsibility might be also outsourced, as it can add extra costs for the entity.
Settler Trading review discussion: Larry McGonegal on future of the Forex industry
Following the discussion, I have reached out to one of the industry old timers, Larry McGonegal. Mr. McGonegal had been serving at FXCM’s New York office as Forex and Futures trader as much as 10 years. Today, we talk with Larry about his new gig - Settler Trading. Settler trading is the specialist risk management company, providing a variety of services for Forex industry participants.
Today I had the chance to talk to Larry McGonegal about Settler Trading review and the future of the Forex industry. My aim was to do a quick Settler Trading review, and learn more about Larry's experience within FXCM. Lastly I also wanted to examine the implications of MiFID II for the Forex industry.
Kristina Frunze: Please tell me about your experience within FXCM?
Larry McGonegal: I joined FXCM at the very early stage when CFDs and FX trading was just picking up. I was with the company for over 10 years managing the hedge/trading desk. I've seen a lot of growth in the industry in that period of time.
Kristina Frunze: Could you please tell me more about Settler Trading?
Larry McGonegal: We are a leading global risk management firm committed to working with our clients to deliver absolute returns through our unrivaled market experience, cutting-edge technology, and strategic approaches.
Our team has the in-depth market experience and decades of managing and growing trading businesses across the globe. Additionally, we believe that we have a lot to offer in terms of delivering results and efficiencies to our clients.
Kristina Frunze: Why now? What are the Settler Trading outsourcing advantages for brokers?
Larry McGonegal: 'The global financial market is getting more complex by the day. What we're seeing is that many brokerage companies/trading providers lack the expertise and market knowledge in some areas of their business.
This is where Settler Trading can come in and make the difference. Trading/brokerage companies need a team/people who can identify opportunities, deliver efficiencies and optimize profitability amidst the chaos of the markets.
We take pride in having decades of experience operating and managing risks for some of the world’s largest dealing desks amidst highly volatile market conditions.
I think the biggest difference between Settler and our competitors is our experience. We have been in the market since it’s inception. We have managed every type of book from the largest in the world all the way down to start ups. Also, we know what it takes to be a successful broker not only from the risk side but from the total perspective. '
Kristina Frunze: How do you think the implementation of MiFID II in January 2018 will shape the future of Forex market?
Larry McGonegal: 'Firms will need to change their business models specifically from a dealing standpoint and MiFID is just one regulatory example. Also, we feel our service fits in perfectly with the changes in the regulatory environment globally.
MiFID II will have a tremendous impact on the FX markets and the overall financial markets.
It will mean financial services providers will need to have efficient, transparent operations and procedures to ensure best trade execution.
Settler is well positioned to help cash squeezed brokers cut costs. Moreover, it helps to increase efficiency and profitability as regulations increase. Settler’s experience navigating the changes over the course of the past several decades in our view makes us the standard in the risk management space. We look forward to helping our clients increase their bottom line and face the many challenges that will come head on. More on our website.'
What do you think? What changes do you foresee for the Forex industry? Share your opinion with over 100K AtoZ Forex readers.