Statistical analyses by economists have found that a one-dollar change in wealth leads to a permanent change in consumption spending, in the same direction, of about three to five cents - the so-called "wealth effect." The full effect of a major shift in wealth on consumption spending appears to take place over a period of one to three years.
More broadly, the aim of the GFXC has been to ensure that market participants have easily accessible and understandable information on how their trades are handled, allowing them to make informed decisions. While there has been progress in this area, the Committee’s view is that the availability and adequacy of some elements of disclosures remains an issue.