ABSTRACT
Rapid technological and regulatory changes are profoundly altering FX markets, although special features of these markets are likely to survive. Participant profile and behaviour is also changing, as technology makes it easier for small parties to access markets anytime and anywhere. The chapter reviews these changes, internationally and then domestically. Reforms in Indian markets offer a good case study of the tensions between regulators, markets and technology. The chapter also draws out implications for effective Central Bank (CB) interventions and for exchange rate policy.
