Big exchanges face threats from off-exchange trading and, in Europe, regulation coming into force by 2007 will blur the distinctions between over-the-counter and on-exchange trading.

ECONOMIST: London Stock Exchange

The SEC is also studying the effects of various trends that have shaped the U.S. stock markets over the course of the last decade, including the proliferation of high frequency trading and of off-exchange trading in so-called dark pools.

FORBES: SEC Sets 6-Month Test of Stock Circuit Breakers

The SEC has already proposed a number of changes designed to address their growing influence, including extra restrictions on broker-dealers that provide direct market access to high frequency traders, a trader tracking system for large traders, circuit breakers that would slow trading in individual stocks if they fall more than 10%, and new rules for off-exchange trading venues.

FORBES: SEC Wants Real Time Trading Data

Technology has in turn spawned internalisation of trades by big investment banks off-exchange, alternative trading systems, and automated block trading.

ECONOMIST: Good times rarely last

As discussed on prior blogs, the recently enacted Dodd-Frank Fin Reg bill forced the hand of the CFTC to act by Oct. 19 because it would otherwise bar non-eligible contract participants from off-exchange retail forex trading.

FORBES: New CFTC Forex Trading Rules Call For 50:1 Leverage

For the third time in six months, the U.S. Securities and Exchange Commission has pushed off proposals to enhance exchange-traded fund trading by the New York Stock Exchange and Nasdaq Stock Market.

FORBES: The Lawless Society of ETFs

The Commodity Futures Trading Commission has published its highly anticipated final rules for trading off-exchange retail forex.

FORBES: New CFTC Forex Trading Rules Call For 50:1 Leverage

Most online forex traders have accounts with retail off-exchange forex brokers, most of whom only offer trading in the forex spot market.

FORBES: Keeping Straight With Forex Reporting Requirements

That is not to say that risk-off trading will not continue to dominate foreign exchange, but can the EUR fully recover from here?

FORBES: EURO, Yen Losers In Face Of Cypriot Bailout Offer