Chancellor George Osborne is set to outline plans to regulate the UK’s foreign exchange market, it has been reported.

The BBC revealed that the largely unregulated sector will be targeted by the Treasury in a bid “to clean up the market” following a series of official investigations into exchange rate manipulation.

The chancellor is said to be working with Whitehall officials and the international Financial Stability Board on new regulations, which could be unveiled over the next few weeks.

Commenting on the news, Matthew Coupe, director of regulation and market structure at NICE Actimize, said that while the move was welcome, regulation should not be rushed through.

“Osborne’s plans to provide regulation to the FX market are long overdue. But regulating it will be a massive challenge, and will not happen quickly,” he said. “If Osborne moves FX trading to more electronic markets, this can only provide greater transparency and greater ability for oversight.”

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