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Guy Debelle: The FX Global Code

Speech by Mr Guy Debelle, Deputy Governor of the Reserve Bank of Australia, at Tradetech FX EU, Hybrid Conference, 8 September 2021

Thanks to Matt Boge for his incredible assistance over my term as Chair, as well as Grigoria Christodoulou and the other members of the GFXC Secretariat.

Tonight I will talk about the recently completed review and update of the FX Global Code. The updated Code was released on 15 July.1 Tonight I will remind you about the important role the Code plays in the foreign exchange (FX) market. I will summarise the parts of the Code that have been updated and talk about the accompanying papers on pre-hedging and last look.

FX Global Code

The FX Global Code was launched in May 2017. It was a direct and important response to the lack of trust the foreign exchange industry had been suffering on the back of a number of instances of misconduct in the market and the associated multi-billion dollar fines. This lack of trust was evident both between participants in the market and, at least as importantly, between the public and the market. The lack of trust was impairing market functioning. The market needed to move towards a more favourable and desirable location, and allow participants to have much greater confidence that the market is functioning appropriately.

It is also important to remember what the alternative was in the aftermath of the scandals. There was a decent chance authorities could conclude that a substantial regulatory response was necessary to generate the desired improvement in market structure and conduct. But the Code provided the opportunity for the FX market to address the lack of trust and market dysfunction.

The Code was developed through a public sector–private sector partnership. It was a joint effort of central banks and market participants drawn from all parts of the markets: from the buy side, including corporates and asset managers, and the sell side, along with trading platforms, ECNs and non-bank participants. The membership was also from all around the world, drawing from the various Foreign Exchange Committees (FXCs) across the globe comprising all the top 15 FX markets by turnover, both advanced and emerging markets. The Global Foreign Exchange Committee (GFXC) that maintains the Code has since expanded to 20 members.

The Code set out global principles of good practice in the FX market to provide a common set of guidance to the market. The 55 principles in the Code cover ethics, information sharing, aspects of execution including e-trading and platforms, prime brokerage, governance, risk management and compliance, and confirmation and settlement.

The Code is principles-based rather than rules-based. There are a number of reasons why this is so but, for me, an important reason is that the more prescriptive the Code, the easier it is to get around. Rules are easier to arbitrage than principles. The more prescriptive and the more precise the Code, the less people will think about what they are doing. If it’s principles-based and less prescriptive then market participants will have to think about whether their actions are consistent with the principles of the Code.

The Code is not a procedures manual. Rather, the Code articulates principles that need to be taken into account. Individual firms may then take these principles and reflect them in their own procedures manuals. Our aim in setting out these principles is to provide market participants with the framework in which to think about how they, for example, handle their orders. The emphasis here is very much on the word ‘think’.

These principles of good practice have helped to restore confidence and promote the effective functioning of the wholesale FX market. In my view, the FX market is in a better place than it was a few years ago. That is confirmed by surveys of market participants too, including the one conducted by the GFXC a couple of years ago.

The Code has also been adopted by a number of securities regulators round the world as the primary reference for their oversight of the FX market, including in the UK, in China and in my own market Australia.

When we launched the Code, it was agreed that the Code would be reviewed by the GFXC every three years to ensure it remained appropriate and to also ensure it stayed current with the ongoing evolution of the FX market.

Hence, around two years ago, the GFXC surveyed market participants to assess what areas of the Code needed to be reviewed.2 The primary response of market participants was that the Code remained fit for purpose and changes should only be made as necessary. The strong guidance was that changes to the Code should be contained to a few areas. The GFXC identified a few key areas requiring review to ensure that the Code continues to provide appropriate guidance and contributes to an effectively functioning market, and remains in step with the evolution of the market.3 The GFXC also saw the opportunity to provide greater consistency and usability in disclosures.

Over the past 18 months, various working groups of the GFXC, drawing on a diverse group of market participants and central banks, have been working on the review. The proposed updates to the Code have been through a number of rounds of feedback with market participants through the FXCs round the world, as well as a public feedback process. I would like to thank the broad range of market participants who provided us with feedback. I would particularly like to thank the working groups for their hard work, especially given the challenging environment of the pandemic.

The Review of the Code

Following this process of review and consultation with industry, the GFXC has published the updated version of the Code. The July 2021 version of the Code replaces the earlier, August 2018 version. In total, 11 of the Code’s 55 principles have been amended.

The GFXC has also developed disclosure cover sheets and templates for algo due diligence and transaction cost analysis (TCA) to assist market participants in meeting the Code’s principles for disclosure and transparency. Additionally, the GFXC has published guidance papers on the practices of Pre-Hedging and Last Look to support market participants in applying the Code’s principles in these areas.

One area that reflects the development of the market is the role played by Anonymous Trading. The Code has been amended to encourage greater disclosure by those operating anonymous platforms, including of their policies for managing the unique identifiers (‘tags’) of their users. Anonymous trading platforms are also encouraged to make available the Code signatory status of their users.

Recognising the value that data related to trading activity holds for market participants, the Code now states that FX e-trading platforms (including anonymous platforms) should be transparent about their market data policies, including which user types such data is made available to and at what frequency and latency. Platforms are also encouraged to disclose the mechanisms and controls by which they are managing or monitoring the credit limits of their users.

The risks associated with FX settlement are potentially very significant and have come back into view again following the publication of the previous Triennial survey of FX turnover by the BIS.4 Consequently, the GFXC identified a need to strengthen the Code’s guidance on Settlement Risk. Amendments have been made to place greater emphasis on the usage of payment-versus-payment (PVP) settlement mechanisms where they are available and to provide more detailed guidance on the management of settlement risk where PVP settlement is not used. New language on the potential systemic consequences of a market participant’s failure to meet their payment obligations has been included to specifically discourage ‘strategic fails’.

The Code’s guidance on the information that providers of Algorithmic Trading or aggregation services should be disclosing has been expanded to include the disclosure of any conflicts of interest that could impact the handling of client orders (such as those arising from interaction with their own principal market-making desk).5 More broadly, the GFXC believes the market would benefit from greater uniformity of disclosures in this area. To enable clients to more easily compare and understand the services being offered, market participants providing algorithmic trading services are now encouraged to share their disclosure information in a standardised format. To this end, the GFXC has published an Algo Due Diligence Template that market participants may use, as appropriate.

Similarly, the GFXC believes that Transaction Cost Analysis would be aided by greater harmonisation of data reporting within the industry. TCA is central to determining the quality of execution received by users of algorithmic trading services. As the barriers to conducting TCA can be high, a standardised information set could be particularly helpful for less-sophisticated clients or those with limited resources. The GFXC has published a Transaction Cost Analysis Data Template that should assist in bringing about greater standardisation.

Disclosure Cover Sheet and Templates for Algo Due Diligence and Transaction Cost Analysis

Clear and accessible disclosures allow market participants to make informed decisions about the other market participants with whom they interact. A key area of focus for the GFXC was the challenges market participants faced in accessing and evaluating the large amount of varied disclosure information being made available to them.6 To address this, the GFXC has created standardised Disclosure Cover Sheets for liquidity providers and for FX e-trading platforms. They have been developed to improve the accessibility and clarity of existing disclosures. You should be able to more easily compare and contrast disclosures across a set of standardised information.

The Code has also been expanded to include explicit references to the provision of information about trade rejections. Market participants should be making clients aware of the basis on which trades might be rejected, and should be keeping records of the reasons behind electronic trade rejections.

The Disclosure Cover Sheet, the Algo Due Diligence Template and the TCA Data Template can support market participants in meeting the range of disclosure and transparency principles within the Code. They are available on the GFXC website and their use is voluntary. Market participants will be able to post their Disclosure Cover Sheet alongside their Statement of Commitment on participating public registers, further supporting accessibility of disclosure.

Guidance Papers on Pre-Hedging and Last Look

Principles 11 and 17 of the FX Global Code describe good practice for market participants using pre-hedging and last look. They continue to be areas that generate strong and sometimes diverse views across market participants. There was demand for further clarity on the appropriate usage of these trading practices. Hence, the GFXC has published separate guidance papers on these topics. These papers are intended to be read alongside the Code in its entirety. (That is, there are other principles in the Code that cover practices relevant to pre-hedging and last look, not just Principles 11 and 17.)

The Guidance Paper on Pre-Hedging discusses the circumstances in which pre-hedging could be used in the FX market and the controls and disclosures that could help align pre-hedging activity with the Code. As the paper states, in utilising pre-hedging, liquidity providers are expected to behave with integrity both in executing their client activities and in supporting the functioning of the FX market. While the intent of any liquidity provider conducting pre-hedging should be to benefit the liquidity consumer in executing an anticipated order, there is no guarantee that it will always result in a trade, or a trade at a price that is beneficial to the liquidity consumer. Pre-hedging done with no intent to benefit the liquidity consumer, or market functioning, is not in line with the Code and may constitute illegal front-running.

The Guidance Paper on Last Look has generated a larger volume of discussion and feedback than the other parts of the review. The guidance paper reinforces Principle 17 of the Code by emphasising that the last look be applied in a fair and predictable manner. The guidance paper does move the industry forward in providing greater clarity about the intent of Principle 17. In addition, the disclosure sheets provide liquidity consumers with the capacity to better assess in a consistent manner, the way they are being treated in the last look window.

Last look is intended to be used for the price and validity checks only, and for no other purpose. LPs should apply the price and validity check without delay. Anything else that prolongs the last look window is contrary to the intent of the Code. At the end of the guidance paper, it outlines some areas that liquidity consumers should monitor to assess whether last look is being applied appropriately.

We did consider whether to state what some of those other purposes might be that you should not use last look for. We have not done so for a number of reasons. First is that the Code is principles-based, not regulation, and the principle underlying last look makes it clear that there is no other legitimate purpose beyond price and validity checks. Second, if we had a description of some activities that we don’t regard as acceptable, then unless we had a completely exhaustive list, which is close to impossible, we run the risk of providing a safe harbour for anything that wasn’t on the list.

In that regard, some have said we should be more prescriptive about last look. But again, I would remind you that the Code is principles-based. It is not regulation.

Another area of debate was around the word ‘promptly’. Neill Penney, the co-vice chair of the GFXC, makes the point that the use of the word ‘immediate’ could be interpreted by the market as the GFXC indicating that all liquidity providers needed to upgrade their technology to move to a zero hold time. That’s not an outcome we are after.

The disclosure cover sheets ask about the length of last look window. Because the technology has not yet been invented to run processes without taking any time at all, requiring that length to be zero would ban last look. Some people in the market use the term ‘hold time’ to mean length of last look window. In that sense a non-zero hold time is clearly consistent with the Code. Decisions should be prompt and may well be within small fractions of a second in many cases, but cannot truly be immediate. Others use hold time or additional hold time to mean a deliberate delay before starting the price and validity check. Such a delay is not consistent with the code; the guidance paper makes clear LPs should apply the price and validity check without delay.

Because of the inconsistent use of hold time, the guidance paper and cover sheets have deliberately avoided relying on market participants having a single definition of it. If someone in the market talks to you about hold time, ask them to confirm what they mean before replying.

Moreover, trying to define a time period doesn’t work because it’s going to differ in different circumstances, in different markets, with different latencies and different systems, so I don’t see that as feasible. At some level, this is semantics, but the combination of promptly and without delay, makes the intent clear in my view.

As I mentioned, alongside the paper, the GFXC published standardised disclosure cover sheets for liquidity providers which includes a section on last look practices. The intent is to provide a standard form so that liquidity consumers can more easily compare and contrast the offerings from LPs.

Liquidity providers adhering to these principles and providing transparency about their practices though the disclosure cover sheets should help to give their clients greater clarity about the process. Liquidity consumers should then use this information to evaluate their execution, ask questions of their liquidity provider’s last look process, and evaluate whether to trade with liquidity providers that are using last look.

Finally, there is clearly continuing debate in the industry about the application of last look. The GFXC intends to continue to monitor the application of last look and the effect of the guidance paper, and take additional action if necessary. This may include providing further guidance going forward, potentially via updates to Principle 17.

Statement of Commitments

Almost 1,100 entities globally have signalled their adherence to the Code’s principles by signing a Statement of Commitment. With the publication of the updated Code, the GFXC is encouraging market participants to consider renewing their Statements of Commitment, having regard to the nature and relevance of the updates to their FX market activities.

The GFXC acknowledges that the changes to the Code will affect certain parts of the market more than others. For those most affected by the changes, we would anticipate a period of up to 12 months for practices to be brought into alignment with the updated principles. We would expect that the disclosure cover sheets would be posted alongside the Statement of Commitments on a similar timeframe, if not sooner.


To conclude, the GXFC has completed the three-year review of the FX Global Code. The Code has been updated to remain current with the ongoing evolution of the FX market. It will continue to serve its important role of setting the standard for good practice.

But to do so, it requires that you as market participants continue to reflect the principles of the Code in your activities in the FX market. I would strongly encourage you to familiarise yourself with the changes to the Code, and particularly to make good use of the disclosure templates.

In the end, we all have a strong common purpose in ensuring that the FX market continues to operate effectively and with integrity.

1 GFXC (2021), ‘GFXC Updates FX Global Code, Publishes New Templates for Disclosures and Guidance Paper on Pre-Hedging’, Press Release, 15 July. Available at <https://www.globalfxc.org/press/p210715.htm>.

2 GFXC (2020), ‘GFXC 2019 Survey Results’, January. Available at <https://www.globalfxc.org/docs/gfxc_survey_results_Jan20.pdf>.

3 GFXC (2019), ‘GFXC Priorities for the 3-Year Review of the FX Global Code’, 6 November. Available at <https://www.globalfxc.org/events/20191204_summary_3_year_review_feedback.pdf>.

4 Schrimpf A and Sushko V (2019), ‘Sizing Up Global Foreign Exchange Markets’, BIS Quarterly Bulletin, December, pp 21–38. Available at <https://www.bis.org/publ/qtrpdf/r_qt1912f.htm>.

5 For more on algo trading, see BIS (2018), ‘Monitoring of Fast-Paced Electronic Markets’, report submitted by a Study Group established by the Markets Committee, September. Available at <https://www.bis.org/publ/mktc10.pdf>.

6 Hauser A (2019), ‘Run Lola Run! The Good, the Bad and the Ugly of FX Market Fragmentation – and What To Do About It’, Speech at TradeTech FX 2019, Barcelona, 13 September. Available at <https://www.bankofengland.co.uk/speech/2019/andrew-hauser-panellist-at-trade-tech-fx-europe-barcelona>.

FCA warns that younger investors are taking on big financial risks

The Financial Conduct Authority (FCA) has published research findings into better understanding investors who engage in high-risk investments like cryptocurrencies and foreign exchange.

The findings reveal there is a new, younger, more diverse group of consumers getting involved in higher risk investments, potentially prompted in part by the accessibility offered by new investment apps. However, there is evidence that these higher risk products may not always be suitable for these consumers’ needs as nearly two thirds (59%) claim that a significant investment loss would have a fundamental impact on their current or future lifestyle.

The research found that for many investors, emotions and feelings such as enjoying the thrill of investing, and social factors like the status that comes from a sense of ownership in the companies they invest in, were key reasons behind their decisions to invest. This is particularly true for those investing in high-risk products for whom the challenge, competition and novelty are more important than conventional, more functional reasons for investing like wanting to make their money work harder or save for their retirement. 38% of those surveyed did not list a single functional reason for investing in their top 3.

Sheldon Mills, Executive Director, Consumer and Competition at the FCA said: ‘Much of the consumer investments market meets consumers’ needs. But we are worried that some investors are being tempted – often through online adverts or high-pressure sales tactics – into buying higher-risk products that are very unlikely to be suitable for them.

‘This research has helped us better understand what drives and motivates consumers so we can tell them about the risks involved in these investments through our investment harm campaign.

‘We want to make sure that we encourage the ability to save and invest for lifetime events, particularly for younger generations, but it is imperative that consumers do so with savings and investment products that have a suitable level of risk for their needs. Investors need to be mindful of their overall risk appetite, diversifying their investments and only investing money they can afford to lose in high risk products.

‘We also hope our research will provide valuable insights for other organisations that are involved in tackling harm in this market.’

The research shows that investors often have high confidence and claimed knowledge. However, it also shows a lack of awareness and/or belief in the risks of investing, with over 4 in 10 not viewing ‘losing some money’ as one of the risks of investing, even though as with most investments their whole capital is at risk. In some cases, investors can lose more than they initially invested for example with contract for difference investments. These investors also have a strong reliance on gut instinct and rules of thumb, with almost four in five (78%) agreeing “I trust my instincts to tell me when it’s time to buy and to sell” and 78% also agreeing “There are certain investment types, sectors or companies I consider a ‘safe bet’”.

Research findings indicate that this newer audience has a more diverse set of characteristics than traditional investors. They tend to skew more towards being female, under 40 and from a BAME background. This newer group of self-investors are more reliant on contemporary media (e.g. YouTube, social media) for tips and news. This trend appears to be prompted by the accessibility offered by new investment apps.

These younger investors may have the lowest levels of financial resilience making them more vulnerable to investment loss. Research showed that a significant loss could have a fundamental lifestyle impact on 59% of self-directed investors with less than 3 years’ experience, who are more likely to own high risk investment products, compared with 38% of investors with greater than 3 years’ experience.

Tackling harm in the consumer investment market is a priority for the FCA. The FCA commissioned BritainThinks to conduct in-depth research into self-directed investors’ behaviours, attitudes and financial resilience. Together with feedback from its Call for Input on the consumer investment market, this research will underpin the FCA’s work in the consumer investment market. In particular, the research will help design a new campaign to address the harm caused from consumers investing in high risk, high return, illiquid investments that may not be suitable for their needs.

Alongside the publication of this research, the FCA has today launched its digital disruption campaign to prevent investment harm. The campaign uses online advertising to disrupt investors’ journeys and drive them to the high return investments webpage – which covers key questions consumers should ask before investing.

The FCA advises consumers to consider five important questions before they invest: 

  1. Am I comfortable with the level of risk?
  2. Do I fully understand the investment being offered to me?
  3. Am I protected if things go wrong?
  4. Are my investments regulated?
  5. Should I get financial advice?

The FCA has recently published work to tackle consumer harm in the investment market including banning the mass-marketing of speculative mini-bonds and will set out its further plans later this year. The regulator also published a warning to consumers on the dangers of investments advertising high returns based on cryptoassets.

FX execution algorithms contribute to market functioning but bring new challenges

  • Execution algorithms (EAs) – designed to buy or sell foreign exchange according to a set of user instructions – have contributed positively to FX market functioning.
  • As EAs change the way market participants access the FX market and how trades are executed, they also give rise to new challenges.
  • Central banks and market participants must have access to the necessary data, skills and tools to allow them to assess the opportunities and risks of evolving markets.

Execution algorithms – designed to buy or sell a predefined amount of foreign exchange according to a set of user instructions – have seen a rise in usage amid an increasingly decentralised and fragmented trading environment according to a report published today by the BIS Markets Committee.

This has helped support price discovery and market functioning but also has the potential to create new risks, said the report, FX execution algorithms and market functioning.

The report examines the drivers and implications of the increase in EA usage in FX markets. It draws on a unique survey of 70 sophisticated market participants globally and extensive industry-wide outreach, and provides distinctive perspectives on the use of EAs, including by central banks.

Prepared by a study group led by Andréa M Maechler, Member of the Governing Board of the Swiss National Bank, it concludes that while EAs improve market functioning, they also create new challenges. In particular, they transfer execution risk from dealers to end users; contribute to changing liquidity dynamics and the underlying market structure; and raise the bar for market participants in accessing the data, skills and tools required to navigate this market successfully.

“The report provides an insightful stocktake of the growing use of FX execution algorithms by a broad range of participants in FX markets, and highlights both the benefits and the potential risks of such execution algorithms. This will help market participants gain a deeper understanding of such elements, which are becoming increasingly important in FX markets,” said Jacqueline Loh, Deputy Managing Director, Monetary Authority of Singapore, and Chair of the Markets Committee.

EAs may also create self-reinforcing loops and exacerbate sharp price moves, although initial observations from the Covid-19 pandemic suggest that these risks may be less acute than expected. Still, further research is needed.

“While the focus of the report is on the FX market, many of the findings are also of broader relevance to other fast-paced electronic markets experiencing similar trends. As those markets continue to evolve rapidly, access to high-quality data, novel skills and adequate tools becomes key in this context,” said Ms Maechler.

These issues require broad-based collaboration between the official and the private sectors. The Global Foreign Exchange Committee (GFXC) has already established workstreams on algorithmic trading and disclosures to examine them in detail.


EURUSD has been trading within a well defined uptrend over the last several months, since breaking out in early 2017. 1.2360 provided support to the pair in early February and now switches to resistance.

The pair’s top level was $1.2555, and recent low was 1.2155. Immediate resistance is seen around 1.2350. A clear break above that area could lead price to neutral zone in nearest term testing 1.2400 area. A close significantly below 1.2200 could point toward a bearish correction.

The next strong support might lie at 1.2060. A break and daily closing below the 1.2000 support area shall trigger renewed selling interest, validating a move towards the 1.1554 level which is the low of the last major downside move.

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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. All data without guarantee.

Technical Analysis for EURUSD and USDCAD

Technical Analysis for EURUSD and USDCAD

EURUSD gapped up higher today and is keeping most of the gains after the results of French election. The pair hit the daily high at 1.0904 and made the low at 1.0820 just below the 200d MA and is moving slower higher after. It is bullish that EURUSD tested with success the 200d MA, so we will stay long as the pair is trading above that support.

USDCAD makes and impressive comeback after touching the daily low at 1.3410, enhancing the bullish momentum that we wrote about last week. We are expecting short covering to start soon in the US session.


The information is not an offer, no promotion, no consultation and no advice to buy or sell stocks, indices or currencies.  Trading stocks, indices or currencies is not only a chance, there is always a risk to lose money. Please only trade currencies if you are able to compensate possible losses. Please note that high profits always also contains a high risk. Please also trade with money that you dont need for daily costs.  Interferences with availability over the internet, availability of email deliverability or other software problems are further possible risks when trading with currencies

Disclaimer: Trading foreign exchange (“Forex”), Commodity futures, options, CFDs and SpreadBetting on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange (“Forex”), Commodity futures, options, CFDs or SpreadBetting you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange, Commodity futures, options, CFDs and SpreadBetting trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results.
This technical analysis is intended to provide general information and does NOT constitute the provision of INVESTMENT ADVICE. Investors and traders should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.


Investigators turn attention to second forex fraud in Dubai

Investigators turn attention to second forex fraud in Dubai

As the man behind a Dh50 million forex scheme that promised to double investors’ money is arrested for a second time, investigators are now turning their attention to a second forex fraud believed to have snared thousands of Emirates crew.

Sydney Lemos, who investors claim was the protagonist in the Exential operation run from Media City, has been rearrested and is in police custody, according to lawyers. He is accused of leading a team of sellers promising 120 per cent returns on US$20,000 accounts invested in foreign currencies. The bogus Exential trading scheme was shut down by the Economic Development Department last year.

Private investigators at UK firm Carlton Huxley, who are working on behalf of 30 clients – most of whom Emirates cabin crew – claim a second fund offering similar returns could have more victims.

UTMarkets is a UK-run website with offices in Bulgaria offering investors the chance to trade Forex and other commodities.“Our lead investigators have established that some people involved in Exential may also be connected with UTMarkets,” said John Rynne, a director of Carlton Huxley. “Carlton Huxley has been retained by a number of clients to look into the conduct of those involved in UTMarkets. “We are working with the Bulgarian law firm New Balkan Law Office along with authorities in the UK and Bulgaria.” The UTMarkets website makes similar profit promises to those of Exential, which left thousands devastated by debt.

The site, which remains active, offers an “unparalleled mix of forex and commodities brokerage services that’s easy to use and completely secure”.

Fraud investigators said the UTMarkets scheme developed quickly through recommendations among airline workers in late 2015 and early last year as Exential started to collapse.

“We have grounds to believe there are about 6,000 UTMarkets victims, 95 per cent of whom work for Emirates airline,” said one of the UK investigators, who has visited Dubai several times to interview account holders of both schemes. “We are keeping the legal department of Emirates informed and have identified people who appear to have been actively involved with Exential who are also involved in UTMarkets.”

Several UTMarkets account managers were approached for comment, but none responded. Asif, an Emirates ground crew employee from India who has been in Dubai for 11 years, borrowed about Dh110,000 to invest in UTMarkets in January 2016. He earns Dh15,000 a month.

He was paid about Dh7,000 a month for five months, but was encouraged to reinvest most of that by relationship managers working from an office in Sofia, Bulgaria. “I had heard of Exential for years, but had not invested,” he said. I was hoping to plan for my future with my wife, and heard Exential account holders were having problems, so invested with UTMarkets instead. They were offering almost twice as much in monthly returns. “My friends and colleagues at Emirates persuaded me that UTMarkets was a better investment.”

He claims many who lost out through Exential ploughed more money from loans and credit cards into the UTMarkets funds in an attempt to recover their initial deposits. Asif, who took no financial advice before handing over the cash, said he is owed about Dh84,500 from UTMarkets and was kept informed by his relationship managers via a What’sApp group that is no longer posting. “One of my friends has invested $30,000, another $50,000,” he said. “There are a lot of people in Dubai with big financial commitments to this. The conversation with UTMarkets stopped when they stopped paying out each month. The account managers have all now disappeared. It’s hard to know if the trading information they were giving us was real, or fake.” Carlton Huxley is planning a series of free to attend educational seminars later this year in Dubai to warn about the dangers of investing in similar schemes.


Technical Analysis USDJPY and EURUSD

Technical Analysis USDJPY and EURUSD

USDJPY is under pressure today breaking and the 113 level. The pair will rebound from current level as it has reached oversold level and the shorts will run for some profit taking.

EURUSD is trading today in positive bias again as dollar is under pressure. The pair reached the daily high t 1.0754 and i will stay bullish as long as the pair is trading above the 1.0715 level.

Support levels for EURUSD at: 1.0699 – 1.0686 – 1.0677
Resistance levels for EURUSD at: 1.0746 – 1.0763 – 1.0781

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