����ֱ��

A Brief History of ����ֱ��
70 years of evolution

The Beginning

In 1955, 10 years after World War II ended, the European economy had started to recover. In every country the local foreign exchange markets were reopening their doors, mostly under administrative control and close central bank supervision. Technology was very simple, with telex machines operating between banks, and direct lines were available with brokers. But as the market grew, the need to meet among professionals belonging to the same community, beyond national borders, pushed a few friends across the Channel to oficialise their friendly and social structure.

On the 29th of June 1955, representatives from nine countries met in Paris, and the ����ֱ�� movement started. One year later, eight local associations decided to gather under the same umbrella: Association Cambiste Internationale. By the end of the 1960s, our community had grown to 15 National Associations.

Early Development

The 1960’s were very hectic in FX markets, with revaluations and devaluations; FX market issues start to appear in the newspaper headlines. FX markets remained conventional as there were neither new products nor improvement in technology, but the dollar as a treasury currency starts to be a new tool for FX traders. By the end of the 1960s, there were now 25 National Associations in the ����ֱ�� community.

In the 1970s, the FX market volumes exploded. The oil crisis, the erosion and collapse of the gold standard saw international banks open branches all over the world. For ����ֱ��, growth meant that what had been mainly European National Associations, was now open all over the globe, including the Middle East and into Asia. Concurrently, in the Chicago futures markets, financial contracts were launched: this led to new fields and new tools for traders: also, computers gave new speeds capable of processing internal and external information. By the end of the 1970s, there were 37 National Associations affiliated to ����ֱ��.

In 1975, ����ֱ�� launched the first edition of its Code of Conduct, aimed at promoting efficient market practices by encouraging high standards of conduct and professionalism in the foreign exchange market.

Expansion

In the 80’s the trading rooms, mainly on FX and money markets, pushed the doors open to a number of technological products, options, derivatives, off balance sheets, and negotiable papers. Furthermore, a new population integrated the trading rooms: the sales teams. Then, back office staff arrived, bringing with them more and more sophistication, and middle offices appeared in the organisation. Important new types of ����ֱ�� members arrived, and while they were not FX traders, their day to day work is involved in many aspects of trading other instruments, such as fixed income and money markets, but also of critical risk management tools, support staff and trade processing.

In this dynamic environment, ����ֱ�� created the “Committee of Professionalism” (CFP) in order to define basic world markets rules. This was a major step forward in or relevance, as together ����ֱ�� created a level playing field globally through participation in its association of permitted market participants. By the end of the 1980s, there were 50 National Associations.

The 1990s began some glorious years for ����ֱ��. Each country developed its own code of conduct and education programs, but ����ֱ�� took the lead creating the Board of Education (BoE) in order to deliver worldwide certification to over-the-counter market operators in the various products and in various professions. A global ����ֱ�� Model Code was launched which covered many asset classes. Also in Europe, ����ֱ�� was the project manager for EURIBOR. Total membership reached 24,000 professional individuals, representing a wide diversity of financial market instruments. A decision was taken to adapt the ����ֱ�� name to aggregate all diversity trading activities: ����ֱ�� (����ֱ�� FMA), so by the beginning of the year 2000, there were 63 National Associations in our global community.

Financial Crisis

During the next 14 years, the banking industry suffered from significant volatility: firstly with the Asian region monetary challenges, then with the South American debt crisis, a number of countries and systems defaulted. The dot-com/tech bubble burst, and later due to the new global financial crisis in 2007-2008, the banking system, along with the global economy, was hurt. Electronic trading systems were focused on efficient transformation of risk, and brought fresh ideas and structure to the market. However, a reduced number of traditional OTC participants with an interest in the “old ways of doing business” and with a banking culture that had lost its sense of moral obligation, saw a decline in ����ֱ�� membership to around 10,000 dedicated people. Many of the bankers, who didn’t care about the values espoused by the ����ֱ��, have since left or have been forced out of the industry by a public who have demanded better.

Modern Era

To assist with finding a new direction for the financial industry and the global economy, ����ֱ�� provided a strategic response. The two important pillars of the CFP and BoE were joined by the formation of the ����ֱ�� Foreign Exchange Committee (����ֱ��FXC) in 2010 which helped provide a strategic response by bringing solutions to an uncertain and moving environment from its membership. Our collective contributions to the industry helped provide a cohesive voice, and offer forums to debate important structural and regulatory issues with interested people. Almost as though they anticipated the need, the CFP issued an updated ����ֱ�� Model Code in 2013 which was positively received by all financial authorities and banking community around the world. Every ����ֱ�� member pledges to do abide by rules of ethical conduct described in it. Every year, the BoE certifies over 1,500 new participants in front and back offices, and sales teams, with figures increasing.

Today, ����ֱ�� is growing again, and resuming its rightful place in assisting the professional standing of the industry. A broad array of market participants from all sectors in financial services, from sell-side bankers and brokers to buy-side clients and regulators, are again understanding the enormous role that ����ֱ�� can play in the modern world. Many are seeking membership and the strong benefits that membership brings. Large institutions are involved in our training and education programmes, and we fully support Industry Codes/Guidelines/Standards that promote the highest ethical and professional standards for the OTC wholesale financial markets. Being a member of ����ֱ�� is of tremendous importance in many countries, and our fellowship among ����ֱ�� members can open opportunities the world over.

��

Current Chairman��and CEO

Previous Presidents and Chairmen

��

History of ����ֱ�� World Congress

��

��