Forex Trading in Guyana • Forex Strategy • Benzinga - Benzinga

Forex Trading in Guyana • Forex Strategy • Benzinga - Benzinga
Forex Trading in Argentina • Forex Strategy Benzinga - Benzinga
Forex Trading in Oman • Forex Strategies • Benzinga - Benzinga
Risks of failure in $6.6tn forex market at record high, study shows - Financial Times

Posted: 22 Jul 2020 02:56 PM PDT

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

The currency trading sphere of Guyana is expanding, as new loosened regulations make the forex market more accessible to everyday citizens. According to a report by the Bank of Guyana, the forex market of the country reached $7.1 million in 2017. If you're interested in learning more about how you can trade forex in Guyana, be sure to read our guide to opening your account before you start.

Get Started with Forex in Guyana

The rise of online brokerage accounts has made it easier for Guyanese traders to find access to reliable, regulated forex brokers. Expect to take the following steps before you begin trading.

Step 1: Check your internet connection. The most important tool a forex trader can have at their disposal is a high-speed internet connection. Before you open a trading account or start comparing brokers, run a speed test on your internet connection and be sure that your internet access is secure and private.
Step 2: Compare brokers. Reliable brokers operating in Guyana register themselves with the Bank of Guyana, but international options are also available. Compare fees, restrictions, leverage options and currency availability between brokers before you decide where to open an account. Then, use your broker's online process to open your account.
Step 3: Download your trading platform. In addition to a brokerage account, you'll also need a trading platform to trade forex. Though most brokers support popular 3rd-party platforms like MetaTrader 4 or 5, you may also have the opportunity to use your broker's own proprietary platform if they offer one.
Step 4: Fund your account. After your account has been opened in full, you'll need to transfer trading funds into the brokerage account. Most traders in Guyana accomplish this by linking their bank account to their brokerage account and moving money directly between the 2, but many brokers also support wire transfers and e-wallet transfers as well.
Step 5: Place your first trade. Wait for the funds you've transferred to clear into your account, then make your first currency trade using your platform of choice.

Guyana Forex Trading Strategies

There are 2 primary strategies that traders in Guyana use to determine which currencies to buy and sell: fundamental analysis and technical analysis. Fundamental analysis relies on identifying political and economic factors that influence currency relations, while technical analysis takes a more charting-oriented approach to identify patterns in price changes.

The specific strategy that's right for you will vary depending on your financial goals and trading platform. Let's take a closer look at when each strategy is used and what you'll need to get started.

Fundamental Analysis

Traders who use fundamental analysis as their primary trading strategy typically take a medium- or long-term approach to trading. These traders look at political and economic indicators to predict how these factors will cause currency values to shift. Some of the sources of information traders using fundamental analysis might use to do their research include:

Consumer confidence indexes
GDP reports
Unemployment rates
Bond interest rates
Durable good and industrial good orders
Business sentiments and non-farm payroll data

To begin trading using fundamental analysis, be sure that you have consistent access to reliable, unbiased international news.

Technical Analysis

Traders who use technical analysis typically don't spend much time studying political events or economic reports. Instead, they use charting software to chart currency movements, searching for patterns and indicators that might offer clues to how the currency's value will change in the future. Some factors that technical analysis traders might consider include:

Breakouts that signal a currency will show a quick increase in value
Reversal candlesticks that indicate that the currency will change directions
Moving averages and how they're changing
Volume changes

Traders who use technical analysis as their primary trading strategy typically take a short-term approach to trading. To get started with technical analysis, be sure that you have a reliable trading platform and plenty of practice identifying your buy and sell signals.

Forex Trading Example in Guyana

How does forex trading work? Guyanese forex traders take advantage of fluctuations in currencies as they relate to the Guyanese dollar. These traders purchase currencies when the GYD is strong and sell them back when the value falls again. Let's take a look at an example.

You open a brokerage account with an international forex broker and deposit G$100,000 into your account. Your broker offers you 10:1 leverage when trading, which means that you can trade with the power of G$1 million despite only having G$100,000 in your account. You decide that you want to use your trading funds to invest in the USD, which is currently trading at $0.0047 per G$1.

Using your entire lot and leverage, you purchase $4,700 USD. Soon, you see that the value of the USD is rising in comparison to the GYD. When 1 GYD is equal to $0.0042, you decide to cash out. You convert your entire lot of USD back into GYD and are left with about G$1,119,047. After you account for the money you borrowed in leverage and your initial deposit, you've made a profit of about G$119,047 on this trade.

Making Money with Forex in Guyana

Making money with forex in Guyana is possible and completely legal. Unlike some other countries, there are no limitations on the amount of profit that you can take when trading forex, and you can convert Guyanese dollars to any currency you have access to freely.

While this lack of restrictions can make accessing the market easier, it has also led to an increase in forex scams and tax evasion. If you decide to trade forex, take the following steps to protect yourself and your investment.

Record all of your profits. The government of Guyana is cracking down on tax evasion and non-reported income. Keep careful notes on your profits and losses throughout the year so you can more accurately report your true earnings when you pay taxes.
Check for licensure. Not every forex broker operating in Guyana is registered with the Bank of Guyana. If you work with a local broker, ask about licensure before you open an account. If you choose an international broker, make sure the broker is registered with an overseas regulatory body or agreement like the European Union's Markets in Financial Instruments Directive.
Be careful when using leverage. It's possible to find very high leverage availability throughout Guyana. If you decide to trade with leverage, be wary of margin calls and interest rates.

Best Online Forex Brokers in Guyana

When you trade forex, you'll work through a forex broker offering service to clients in Guyana. There are a wide range of forex brokers offering both local currency trading services and service from an international headquarters. If you aren't sure which broker to work with, begin by considering a few of our favorite options below.

Forex Terminology

Forex traders use their own language to discuss trades and place orders. Familiarizing yourself with some of the most common terminologies can help you jump into the market more effectively. Below, you can browse some of the most common forex terms you'll hear when trading.

Pip: Forex currency movements are calculated using pips. A single pip is the smallest possible movement a currency can make. One pip is usually equal to 0.0001 of any given currency. For example, if the value of the Guyanese dollar goes from 0.0020 to 0.0030, you might hear a trader say that the value has moved by 10 pips.
Lot size: Your lot size is the number of units of currency that you are buying or selling. For example, if you want to exchange G$100,000 into USD, your lot size is equal to 100,000.
Orders: An order is a set of instructions you provide to your broker instructing them to buy or sell a currency on your behalf. There are multiple types of orders, and you can use a variety of order types to limit losses and automatically take profits.
Calls: If you use leverage to trade forex, you'll need to be mindful of calls. If the value of your portfolio falls below a certain percentage when using margin, your broker might subject you to a call. If you receive a call, you must deposit more money into your account or close out of your position.

Trade Safely and Securely in Guyana

The country of Guyana has historically faced multiple problems with forex traders evading taxes and forex scams operating throughout the country. If you decide to trade forex, be sure to document all of the profits you take from your trading and report it to the correct authorities. This will allow you to pay the correct taxes on your earnings and limit your liability.

Forex Trading in Argentina • Forex Strategy Benzinga - Benzinga

Posted: 22 Jul 2020 03:01 PM PDT

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Argentina has a long and complicated history of turbulent relations with the forex market. After nearly a decade of tight currency controls, loosened regulations have made it possible for everyday residents and travelers to invest in foreign currencies. If you're interested in learning more about how to trade forex in Argentina, our guide will provide you with everything you need to get started.

Get Started with Forex in Argentina

Getting started with forex trading in Argentina begins with opening a reliable brokerage account from a licensed broker. Use this step-by-step guide to open your account and make your first trade.

Step 1: Find a stable internet connection.

Forex trades might rely on price differences calculated on a second-to-second basis. The most important tool that you can have at your disposal is a consistent, safe connection to the internet. Check that your connection is private and run a speed test on your device before you proceed.

Step 2: Choose a broker.

The forex market in Argentina is one of the most highly regulated in the world. However, this doesn't mean that currency scams don't still exist. Before you open an account with an international brokerage firm, be sure that the broker is regulated by an oversight body like the Cyprus Securities Exchange Commission or the Australian Securities and Investments Commission. You should also make sure that the broker is registered by local authorities like the La Comisión Nacional de Valores (CNV), or National Securities Commission.

Once you locate a broker that you want to work with, open an account through the broker's online process. You might need to provide some personal information (like a scan of your ID or proof of residence) before you can begin trading.

Step 3: Download a trading platform.

Though a few select brokers offer their own proprietary trading platform, you might also need to download a 3rd-party platform from a provider like MetaTrader 4 or 5 before you can trade. Determine which platforms are compatible with your broker's software before you choose how you'd like to trade.

Step 4: Fund your account.

Once your account is fully open, you'll need to link a payment method to fund your trades. Most brokers operating in Argentina offer a number of funding methods, including electronic wallets, debt and credit card purchases and direct bank transfers.

Step 5: Place your first trade.

It might take a few days for your transfer to make its way into your account depending on which transfer method you use. Once your deposit is fully clear, you can officially start forex trading.

Argentina Forex Trading Strategies

The Argentinian peso is a notoriously volatile currency, with an inflation rate of over 50% and multiple recessions in the last decade. While this volatility may be dangerous for long-term investors, it can generate large amounts of profit for smart short-term and medium-term traders with a solid technical analysis strategy.

Technical analysis is a type of currency analysis that relies on the use of charting patterns to predict future price movements. There is a very wide range of profitable and reliable charting patterns that traders look for when executing their trading strategy.

Let's take a look at a few of the most common charting patterns and indicators that technical analysis traders look for when investing. Though these formations aren't foolproof guarantees that you'll earn money trading, they can provide you with a strong "jumping-off point" to develop your own individual strategy.

Reversal Candlesticks

Many short-term traders rely on reversal candlesticks to determine their buy and sell signals. A reversal candlestick is an indicator that tells the investor that a currency is likely to change its price movement trend. The strength of the candlestick can be determined by the candlestick's "tail," the long extending portion outside of the body. There are many types of reversal candlesticks and a candlestick can be either bullish or bearish, depending on its placement.

Breakout Strategy

The breakout strategy is another popular strategy with new traders. Traders who use the breakout strategy invest during periods of low volatility when your base currency is moving sideways. When a candlestick "breaks out" of this predefined pattern, a buy or sell signal is triggered. The breakout is then likely to continue in its movement until a reversal candlestick is triggered.

Forex Trading Example in Argentina

Forex traders earn money by taking advantage of differences in the values of varying currencies. You purchase currencies when the value of the peso is strong, buyback pesos when the peso's value falls and pocket the difference between the trades. Let's take a look at an example.

You deposit $10,000 ARS into your brokerage account. Your broker offers you 10:1 leverage, which allows you to place a trade worth up to $100,000 pesos. You believe that the USD is going to rise in value when compared to the ARS, so you decide to use your entire lot to invest in the U.S. dollar.

$1 ARS is currently equal to $0.014. When your order is filled, you're left with $1,400. A few days later, you see that the value of the peso is falling. When $1 ARS is equal to $0.013 USD, you decide to convert your lot back to your native currency. When the trade is finalized and your position is closed out, you're left with about $107,692 ARS. On this trade, you earn about $7,932 pesos.

Making Money with Forex in Argentina

Tight restrictions on currency exchanges were introduced in Argentina in 2001 in an attempt to bolster the local economy and reduce inflation. For over a decade, this made forex trading essentially against the law for everyday Argentinians. In 2015, the Central Bank of Argentina began to lift restrictions on forex trading, which opened the market to individuals again.

However, currency trading in Argentina is still heavily restricted. You must receive authorization from the Banco Central de la República Argentina (BCRA) before you can access the forex market. If you're an investor based in Argentina, there are no limitations on how much and how often you trade as long as you are registered with the BCRA. If you are a nonresident of Argentina, you're limited to depositing no more than $1,000 into your international brokerage account a month.

The bottom line? While it's possible and legal to make money trading forex in Argentina, you'll need to do your research and ensure that you have the proper authorizations before you enter the market.

Best Online Forex Brokers in Argentina

Though Argentinian officials are working to relax forex trading restrictions, there are currently no recommended local brokers offering service within Argentina. However, a number of licensed and regulated international brokers offer services to investors located in Argentina. Browse a few of our top choices below if you aren't sure which forex broker you'd like to sign up with.

Forex Terminology

Understanding how to use forex terminology before you place your first trade will make it easier to learn more about the market. Familiarize yourself with a few of the most common terms below before you get started.

Pip: A pip is the smallest unit by which a currency can move. In most cases, a single pip is equal to 0.0001 of any currency's value.
Lot size: Your lot size is equal to the number of units of currency you're buying or selling. For example, if you decide that you want to convert $100,000 USD into its EUR equivalent, your lot size on this trade is 100,000. Most traders consider 100,000 units of any currency to be a "standard lot."
Orders: An order is a specific set of instructions you provide to your broker that tells them what type of currency you'd like to buy or sell. Your order tells your broker which currencies you're trading, the price the order should be executed at and when you need the order to be filled. There are multiple types of orders and order type availability might vary by broker.
Calls: A call is a requirement from your broker to deposit more money into your brokerage account or immediately close out of your position. If you use leverage to trade, you might receive a call if the value of your portfolio dips below a certain percentage of its original value.

Profiting in a New Forex Sphere

For years, forex trading was essentially illegal in Argentina. Though restrictions have been loosened, forex trading in Argentina is still more controlled and regulated than most other countries in the world. If you're a trader in Argentina, be sure that you keep up with shifting regulations and adjustments to deposit limits, which may change with little notice.

Forex Trading in Oman • Forex Strategies • Benzinga - Benzinga

Posted: 22 Jul 2020 12:00 AM PDT

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Though Oman's economy has traditionally been heavily associated with commodities like oil and gold, a growing number of traders are taking advantage of the country's modern infrastructure to trade forex. Contrary to popular belief, forex trading in Oman is safe, legal and well-regulated. If you'd like to learn more about how you can begin trading forex in Oman, our comprehensive guide will help you take the first steps.

Get Started with Forex in Oman

The first step to becoming a forex trader is opening a forex brokerage account. Your brokerage account allows you to buy and sell currencies with the assistance of a regulated and licensed brokerage firm. No matter which forex broker you work with, you'll go through the following steps to open an account.

Step 1: Find a stable internet connection. Oman's well-supported high-speed internet infrastructure makes it an ideal country to trade forex in. Before you open an account with a brokerage firm, be sure to stabilize your internet connection and run a speed test.
Step 2: Choose a broker. There are many domestic and international brokers offering services to Omani traders. Research each broker's regulation status, fees and customer service options before you choose where you'd like to open an account.
Step 3: Open an account. Once you find a broker that you'd like to work with, use the broker's online process to open your account. You'll often need to provide a bit of personal information before you can fully access trading options.
Step 4: Choose a trading platform. Though some forex brokers offer their own complimentary platform, you might need to download a 3rd-party trading platform like MetaTrader 4 or 5. Choose a platform that works with your broker and consider your mobile trading needs before you decide.
Step 5: Fund your account. Once your account is fully operational, deposit trading funds. Direct bank transfers and credit and debit card transfers are widely supported across Oman. Some brokers also support e-wallet transfers from companies like Skrill and PayPal.
Step 6: Make your first trade. It can take a few days for your first deposit to clear. As soon as it does, you can place your first trade.

Oman Forex Trading Strategies

Most traders who trade the Omani riyal use technical analysis when predicting how their base currency will move in value when compared to other currencies. Traders who use a technical analysis strategy use charting software to identify patterns and changing trends before buying or selling their currencies.

Let's take a look at a few examples of how you can use technical analysis to inform your trades. You can use these patterns and strategies to begin developing your own unique trading strategy.

Breakout Strategy

The breakout strategy is commonly used during hours when the riyal shows little volatility. Traders use the breakout strategy to identify periods when the currency is moving sideways. When the currency produces a candlestick that "breaks out" of this predefined range of movements, a buy or sell order is triggered. A breakout candlestick often indicates that the currency will show a drastic movement, which can be bullish or bearish, depending on placement.

Reversal Candlestick Strategy

A reversal candlestick is an indicator that a currency will reverse whatever direction it's currently moving when the candlestick is confirmed. A reversal candlestick can be bullish or bearish, depending on its placement, tail length and body. There are a number of different reversal candlesticks that you might see while trading and the strength of each candlestick may vary depending on its tail length.

Forex Trading Example in Oman

Let's take a look at an example of how you might make money trading forex. Imagine that you deposit 10,000 riyals into your trading account. You believe that the value of the riyal is going to fall in comparison to the USD soon, so you decide to convert your entire lot of riyals into dollars. 1 OMR is currently equal to $2.6000 and your broker offers you 10:1 leverage on this trade. Using all of your leverage, you convert 100,000 riyals into $260,000 USD.

Soon, you see that your analysis was correct — the value of 1 OMR falls to only $2.550. You decide that now is the time to convert your entire lot back to OMR, which leaves you with 101,960 riyals. After returning your leverage to your broker, you've taken a total profit of 1,960 riyals on this trade.

Making Money with Forex in Oman

With a strong base currency and easy access to high-speed internet, Omani traders are at an advantage when forex trading. Though the number of forex traders residing or working in Oman is small, the market has greatly expanded in recent years as market regulations relax.

Currency trading in Oman is regulated by both the Capital Markets Authority and the Central Bank of Oman. Regulations require that customers' trading funds be held in separate, secure accounts from the broker's own funds. This means your money is secure even if your forex broker goes out of business. However, there are currently no limitations on leverage usage in Oman — local brokers may offer you up to 1,000:1 leverage. Using this much leverage can be exceptionally risky and quickly wipe out your profits with a single bad trade.

Though making money with forex is legal and possible in Oman, you should take steps to protect yourself and your capital. Only work with licensed brokers registered with the Capital Markets Authority and limit your leverage usage as much as possible.

Best Online Forex Brokers in Oman

Omani traders have access to a wide range of domestic and international forex brokers. Your choice of broker will determine which tools you have access to and which currencies you can buy and sell. Not sure where to begin? Start by exploring a few of our favorites below.

Account Minimum

$100 USD (or equivalent)

Pairs Offered

Account Minimum

$50 USD

Pairs Offered

Account Minimum

$50 USD

Pairs Offered

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn't a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For

International Forex/CFD Traders
New cryptocurrency traders looking for an easy-to-use platform
Traders who want to buy and sell cryptocurrencies on-the-go

Pros

Simple platform that is easy to master
CopyTrader feature that allows new traders to copy the same strategies used by professionals
Virtual dummy account that gives you $100,000 to practice trades

Cons

U.S. traders currently limited to cryptocurrencies
Only 15 major coins available to trade

Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For

Beginners
Advanced traders
Traders looking for a well-diversified portfolio

Pros

Controlled by regulatory agencies of multiple countries
Choice offered in terms of trading platforms
Support available in 14 languages and trading platforms in 20 languages
Practice/demo account available for trying out
Breadth of trading assets

Cons

Does not accept customers from the U.S. as it isn't regulated in the U.S.
Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com's extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn't a standard broker. You can't invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For

MetaTrader 4 users
Beginner forex traders
Active forex traders

Pros

Impressive, easy-to-navigate platform
Wide range of education and research tools
Access to over 80 currencies to buy and sell
Leverage available up to 50:1

Cons

Cannot buy and sell other securities (like stocks and bonds)
Confusing margin requirements that vary by currency
Limited customer support options
Cannot open an IRA or other retirement account

Forex Terminology

One of the first things you'll notice when you start trading forex is that forex traders and brokers have their own set of terms they use to describe trades. Learning these terms before you begin trading can make it easier to learn. Familiarize yourself with a few of the most common forex terms below before you begin.

Pip: A single pip is the smallest calculatable unit of currency, usually rounded to the 4^th decimal place. For example, if the value of the dollar moves from $1.010 to $1.020 in relation to a certain currency, forex traders might say that the value has increased by 10 pips.
Lot size: Your lot size is the number of units of currency that you want to buy or sell. For example, if you place an order to sell $10,000, you have a lot size of 10,000.
Orders: An order is a set of instructions you give to your forex broker, who then executes the purchase or sale on your behalf. For example, you might place an order with your broker that says that you want to convert $10,000 into EUR at a price at or below $1 USD to 0.8800 EUR. There are multiple types of orders and you can use varying order types to limit your losses and maximize profits when trading.
Calls: A call is a major risk of using leverage. If you use leverage to trade and the value of your account drops below a certain percentage of its original value, your broker may subject you to a margin call. After you receive a margin call, you'll be required to deposit more money into your account or close out of your position. This can quickly wipe out any profits you've earned — be careful when you use leverage.

Maximizing Your Profits with Safe Trading

Though the forex market in Oman is regulated and enjoys a high level of oversight, forex scams still exist. Remember to do your research on any broker you choose to work with and ensure that you fully read and understand each broker's fees before you open an account. Just a few days of research can help you maximize your profits by working with the best possible broker available to you.

Risks of failure in $6.6tn forex market at record high, study shows - Financial Times

Posted: 23 Jul 2020 08:01 PM PDT

The risk of failed trades in the vast global foreign-exchange market has never been higher, according to the chief executive of CLS, the central bank-backed settlement service, which admits that it has struggled to keep pace with rapid growth in the industry.

CLS was set up in 2002 under the auspices of the US Federal Reserve to act as a middleman in trades, authenticating and matching instructions to ensure that correct payments are made. The system came through a big test in the 2008-09 financial crisis and again earlier this year with the Covid crisis, helping to safeguard the smooth functioning of the $6.6tn-a-day currencies market.

However, in a study prepared by CLS and published on Friday by the Global FX Committee, the standard-setting body for the currency market, the company found that it now handles just one-third of the deals that are eligible for settlement. On top of that, some $1.25tn of daily transactions are now outside its scope thanks to particularly strong growth in renminbi and rouble trading. The company is set up to deal in 18 currencies, most of which are from advanced economies.

"Given the way in which FX trading has evolved, we have to think of additional ways to solve the problem of systemic risk," said Marc Bayle de Jessé, chief executive of CLS, who joined the New York-based company last year after more than 20 years at the European Central Bank.

He noted that CLS was discussing with regulators and central banks ways to include emerging market currencies when they are traded against the dollar or the euro. He added that the risk of disruption appears greater than "the original Herstatt risk" — a reference to the infamous 1974 payment failure by a German bank that triggered market seizures around the world.

The warning echoes remarks from the Bank for International Settlements, which observed in December that the share of deals backed by CLS had fallen, leaving trillions of dollars of transactions vulnerable to default risk. Last month the GFXC expressed concerns too, saying currency markets faced "potentially very significant" risks due to the amounts involved.

Banks have long complained about the costs of using CLS, an acronym that stands for Continuous Linked Settlement. In 2008, the German state-owned development bank KfW was dubbed the "dumbest" bank in Germany by local media after suffering €300m of losses on a currency deal with Lehman Brothers that was not sent to CLS for settlement.

But many participants in the market still opt not to use the service, trusting that their counterparties will pay up as they promise. That sets the FX industry apart from other financial markets, which make much greater use of central venues to manage default risk, such as exchanges or clearing houses.

Mr Bayle de Jessé admitted that the process of introducing new currencies into the system was cumbersome, and could take a long time. CLS is in discussions with the central bank of Chile about potentially adding the peso. The last addition was the Hungarian forint in 2015.

"Bringing in more currencies under the current framework is complex and confronts various challenges," he said. "We are looking at options to reduce settlement risk . . . at least for [emerging market currencies traded against the dollar or the euro]."

CLS has faced growing competition in recent years, mainly from start-up Cobalt, which is backed by Citigroup, Standard Chartered and IHS Markit.