Finally, let me briefly recapitulate some of more important issues. a. In foreign exchange market, as in any other market, freedom is the default and any restraint by way of regulation has to justify itself. The regulation has to be based on sound economic principles and not on dogmas or evangelism. b.
Though the superiority of free markets as a way of organising economic activity is well recognised, there are many areas where the limitations of market have been widely discussed in the literature and are well accepted. There is no accepted standard for optimum regulation which is often idiosyncratic. The regulation of forex markets has to be seen in that context.