Despite the enthusiasm with which electronic enhancements to trading have been embraced in the spot foreign exchange market, vendors have not successfully extended their services to derivative products involving foreign exchange. A service for the trading of forward foreign exchange has attracted meager volumes, as has a service for the trading of forward rate agreements.
The latter service has been hampered by its inability to offer its products in the United States. If the recommendations of the President’s Working Group were enacted, this trading system would be excluded from the Commodity Exchange Act (CEA), and the legal status of products offered through the service would be clear, likely enhancing its attractiveness. Trading systems for swaps.