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Dodd Frank Won’t Drive Financial Stability, According to Bloomberg FX12 Summit Attendees

November 19, 2012


While the results of the election are in, the impact of the outcome on the global financial markets is far from certain. That’s why last week we gathered more than 270 of our foreign exchange clients in our New York headquarters to hear from top industry and government leaders about how politics and regulation will shape the future of the financial markets.

With regulation such a key topic, we invited former US Senator Chris Dodd, Commodity Futures Trading Commission (CFTC) Commissioner Bart Chilton, International Monetary Fund (IMF) Managing Director Nemat Shafik and other distinguished speakers to share their experience and express their opinions and insights with the audience. (To learn more about what took place at our FX12 Summit please click here.)

But, they weren’t the only ones that night who shared their opinions.

With such a wide variety of clients in the room, we thought it would be a good idea to survey the attendees for their thoughts about some of the pressing issues of the day.

Though we asked about several topics, there were three responses that really caught our attention:

–   70% of those in attendance thought regulation, including pending changes, is not well understood by corporate financial offers, and 16% said it is misunderstood

–   56% believe Dodd Frank legislation will not lead to more stability in the financial markets

–   Only 24% thought there was a high likelihood that U.S. would fall off the fiscal cliff

Another outcome from our conference – and quite relevant to the conversation of the day – was the unveiling of  our new foreign exchange (FX) options trading technology, which will help our clients seamlessly transition to the regulatory environment anticipated with Dodd Frank. Regulation is accelerating changes in the FX marketplace and our new solution will ensure our clients are prepared with the most sophisticated tools to meet upcoming requirements.

Tod Van Name, Global Head of Bloomberg Foreign Exchange, Economics and Commodities