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Forex Market to Be Quarantined

April 1, 2020 by

Today, the World Health Organization (WHO) together with the Bank for International Settlements (BIS) issued a joint statement requesting a complete lockdown of the Forex market due to the ongoing global COVID-19 pandemic.

Forex to Be Quarantined by WHO and BIS

On WHO recommendation, the BIS, after conducting comprehensive consultations with world’s leading central banks and FX market making institutions, has come to a decision to terminate all operations in the foreign exchange market starting from April 6. Initially, the measure is planned to stay in effect for two weeks (until April 20) with further renewals on the table.

The draft regulation on the matter mentions a possibility of a partial relaunch of operations after one week in case strict social distancing norms are to be maintained. Namely, the document requires following precautions to all currency traders (retail and professional alike):

  • Wearing a face mask when approaching a trading platform is a must. A self-made one is OK as long it has at least two layers of cotton fabric and is thoroughly washed and dried after each use.
  • Disposable gloves are mandatory for traders practicing technical analysis.
  • Hands need to be washed with soap after each trade.
  • When trading Forex based on the fundamental analysis, it is necessary to sanitize both the keyboard and the mouse after each trade. FA trades in exotic currencies warrant additionally sanitizing for your monitor.
  • Finally, 2 meter distance is to be kept between you and your trading platform when pending orders (stop or limit) are set.

The announcement has already conjured a storm of outrage from the Forex trading community. Large banks’ trading floors are worried that this measure is taking things too far and will destroy the industry. Conversely, central bank officials and health workers joyfully welcomed the announcement.

If you want to share any remarks about how saddened you are with this news, please use the commentary form below to do so.

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