The Olympic Spirit is alive in FX Markets. There are more than just a few similarities between what is happening in London and developments in global FX markets. Consider a few key characteristics and draw your own conclusion.
Reason #10: Foul play can lead to disqualification
London 2012: A Swiss and a Greek athlete sent home for racist tweets, other athletes leaving suddenly due to ‘illness’ that is rumored to be linked to doping
FX Markets: Google CFTC and enforcement or go here: http://www.cftc.gov/LawRegulation/Enforcement/EnforcementActions/index.htm
Reason #9: Audience participation
London 2012: In many venues, many seats are empty and emergency measures are in place to fill them
FX Markets: Semi-annual survey data for FX spot shows that here also, volumes are down in double-digit numbers in key arenas
Reason #8: When it counts, some powerhouses choke, some deliver
London 2012: Spain’s soccer players won twelve titles in the last decade including the World Championship and the European Championship, but had to exit in the first round after losing to Japan and Honduras, ranked #20 and #63 in the world. On the other hand, the US basketball team delivered the highest win in Olympic history ever and broke another few records against Nigeria while doing it.
FX Markets: You know who you are.
Reason #7: Referee errors
London 2012: An error in judgment when the Olympic committee declined Larisa Latynina, the most decorated athlete until recently, to present Michael Phelps with his record-breaking 19th medal
FX Markets: MF Global, Peregrine…
Reason #6: Records and personal bests
London 2012: Too many to mention
FX Markets: Not as many but they are out there
Reason #5: Un-fair play
London 2012: Olympics badminton players for China, Indonesia and South Korea got disqualified when they were found out of having thrown matches for more favorable match-ups down the line.
FX Markets: Again, you know who you are.
Reason #4: Time can make or break you
London 2012: South Korean fencer Shin A-Lam’s medal hopes got dashed due to erroneous actions by the time keeper, ‘extending’ the last second in a key match to last as long as four, allowing her opponent to score and advance
FX Markets: One second can also feel like an eternity if you need to get out of a risk position
Reason #3: Questionable reporting quality
London 2012: NBC’s decision to time-delay major events instead of reporting them as they are happening infuriates US audiences; just go on Twitter and search for hash tags including #timedelay, #alreadyheardthenews and #NBCfail
FX Markets: US pension funds who filed lawsuits against their custodial banks know the feeling
Reason #2: Against all odds
London 2012: Against Swiss Roger Federer, British tennis player Andy Murray won the gold medal on the grounds of Wimbledon, a venue where no Briton has won a title in almost 80 years
FX Markets: The Swiss National Bank defending the CHF1.20 exchange rate with the Euro
Reason #1: Reporting frequency leaves things to desire
London 2012: You’ll have to wait for four years to find out who are the new Olympic champions
FX Markets: You have to wait 3 years for the BIS to put out another triennial report