Reshaping the FX world

Market watch: Traders at the New York Stock Exchange during afternoon trading. The new cut-offs for FX trading is expected to be challenging for international clients. — AFP

NEW YORK: A looming shift in the way US equity trades are settled is sending unintended shock waves through the US$7.5 trillion-a-day global market for foreign exchange (FX).

At major financial institutions including banks, brokers and investment houses, currency desks are preparing for the world’s biggest stock market to halve the time it takes to settle equity transactions to just one day.