The Foreign Exchange Professionals Association (FXPA) commends the industry for its preparations ahead of Britain’s referendum on whether to Leave or Remain in the European Union, which resulted in the relatively smooth functioning of currency markets in the initial hours and days after the polls closed.
“The FX industry prepared for this unprecedented event with enhanced staffing in all areas throughout the night, with technical and capacity planning,” says the Foreign Exchange Professionals Association (FXPA) in a statement.
“The British pound dropped precipitously as the Brexit vote became known, yet the FX industry’s infrastructure and resiliency ensured the smooth operation of the market during bouts of extreme volatility, which is a necessity in allowing the market to express its views,” FXPA continues.
“In the coming weeks and months, the FXPA will provide a forum for market participants to ensure such operational consistency continues as the implementation of the Brexit plays out. The FXPA will also, in the course of its normal activity, be briefing US government regulators on how the market functioned during this historic night,” FXPA says.
FXPA launched on September 25, 2014 with an aim to engage key US and international regulators, policymakers, the general public and news media through a combination of education, research and advocacy to advance a sound, liquid, transparent and competitive global currency market.