The Impact of the Financial Crisis on the Forex Market
The 2008 financial crisis had an immense impact on the $4 trillion a day global foreign exchange (forex) market. In the decades leading up to the crisis, the forex market had continued to grow and evolve— becoming increasingly regulated as well as more competitive. But when the world economy ground to a halt, international banks and currency trading systems that had become essential to the functioning of the global forex market suffered dramatic losses.
Chief among these losses was that of Swiss bank UBS. As one of the world’s largest forex traders, its standing in the market abruptly fell after it cut its spending on technology during the financial crisis. This challenge allowed rival banks— particularly in emerging markets— to start catching up with UBS in terms of market share. As these banks continued to invest and innovate, the forex market tightened.
The Challenge for Established Forex Players
This tightening posed a challenge for established forex players, such as UBS. Rather than relying on traditional strategies, they had to look for new ways to remain competitive in the ever-changing market. This meant developing ways to manipulate currency prices, as well as developing new technology and trading techniques to stay ahead of the competition.
One example of this is UBS’ use of “algorithmic trading,” a technique used to rapidly place numerous orders over a series of different markets. This enables the bank to minimize its losses due to market fluctuations, and to ensure that it is getting the best rates for its customers. Additionally, UBS has made significant investments in data analysis and risk management, in order to reduce its exposure to market volatility.
Rising Standards of Excellence in the Forex Market
This trend of innovation and investment has been mirrored in other banks and trading systems around the world. The foreign exchange market is now significantly more sophisticated and dynamic than it was fourteen years ago. This ongoing level of investment has allowed the market to achieve greater levels of safety, security and stability.
The advent of more stringent international regulations, as well as advancements in technology, have made the forex market much more reliable and secure than it was back in 2008. This has allowed the market to cater to an ever-expanding range of customers, from individuals to multinationals and governments.
The fourteen years since the onset of the financial crisis have seen the foreign exchange market become more competitive, diversified and innovative than ever before. As established banks continue to invest in new technologies, and as emerging markets increasingly develop their presence in the forex market, it is likely that market standards of excellence will continue to increase.
Understanding the Greatest Generation
Brokaw’s TV anchorman voice is deep and resonant, tinged with a remarkable air of paternalistic authority. With such an imposing presence, Brokaw dives into his narrative with an insight into understanding the Greatest Generation of World War II. This book dares to ask the questions that many of us have never thought to ask of our parents and grandparents, and its answers provide a powerful insight into an era that many of us may never experience. For understanding the Greatest Generation, this book is essential.
The Wonder Years: A Masterpiece
Simply saying that The Greatest Generation is a great album is an understatement. The fourth album by The Wonder Years is an absolute masterpiece. While it is slightly more low-key than the previous albums, the level of impact this album has is unparalleled. The hooks, the beats, and the thoughtful lyrics all come together to create a work of art that can stand shoulder-to-shoulder with the greatest albums in the genre. In short, The Greatest Generation is one of the single greatest albums ever made.
The Legacy of The Greatest Generation
When The Greatest Generation was released, it immediately became an instant classic. It has remained a powerful and influential work of art over the years, and its legacy shows no signs of slowing down. This album is a timeless classic, and its influence can still be felt today. From the hooks to the beats, from the thoughtful lyrics to the powerful message, The Greatest Generation is one of the greatest albums of all time and a must-listen for all generations.
