Forex Trader and South Africa’s youngest millionaire, Sandile Shezi, is urging the Securities and Exchange Commission (SEC) to be innovative when it comes to its approach toward online retail forex trading.
So far, SEC has warned against this market stating it is currently unregulated and consequently may be subject to abuse.
Speaking to JoyBusiness, Sandile Shezi stated that industry players are eager to offer assistance on the formation of some regulation to not only make the market safe from scams but also create jobs.
“I’ve said this even in South Africa with the FCA that whatever it is that they do they can’t stop people from trading. The only way to stop people from trading is shutting the internet so regulations or not people will be trading online. What’s important is people like myself and leaders in the industry sit down with the regulator to explore best ways to make a policy framework functional and ensuring that we protect the people in this industry,” he explained.
So far the Securities and Exchange Commission (SEC) has warned against online trading in forex and cryptocurrencies as it describes these avenues as “unregulated”. In the meantime, SEC says it is opened to proper dialogue with stakeholders in this emerging market.
Online currency exchange is an Internet-based platform that facilitates the exchanging of currencies between countries, or businesses, for delivery in a secure, centralized setting.
Comprised of a network of computers that connect banks, brokers, and traders, the online currency exchange allows the conversion of currencies for delivery. Forex brokers usually offer online currency exchange as part of their platforms. The particular platform that processes the transaction will vary by the broker offering it, the location of the trader, and the currency pairs traded.
Some countries have monetary policies that place restrictions on the convertibility of their money. Currency convertibility is essential in a global economy and critical for international commerce. A nonconvertible currency poses significant barriers to trade and tourism.
Some brokers may not handle the exchange of currencies for a contract for differences (CFD). During the settlement in a CFD futures contract arrangement, cash payments substitute for the delivery of the asset.