“Liberty and justice for all” is the doctrine of indivisibility.
Indivisibility is a measurable, common purpose–an identity with common divisibility; but we don’t even agree whether existence really has a common purpose.
Objectivists, for example, say that common identity naturally reduces to what actually, measurably exists (“objective reality”). So, when FX trades are optioned, having the liberty of whatever means chosen to do so (because it’s a free market, after all), the end result is justified by the means in priority. Changing it is tyranny of the marketplace. Changing the objective is, in reality (in priority), unjust, defying the doctrine of indivisibility.
For Objectivists, the argument is not at all ambiguous. It’s a 0 or a 1, on or off, yes or no. Simple. Elegant. Efficient.
The FX options market, however, is anything but simple, and its elegance is its complexity, which gives value to creating the efficiency of benchmark prices, or “fixes.”
Creating “the fix” is what values the option to buy or sell, which is why New York’s AG is looking into practices associated with fixing the price, known as the LIBOR.
Currencies trade like commodities, using electronic trading platforms described as “automated flow trading.” Algorithms can be programmed to hold “toxic order flows” detrimental to a bank’s position, and within milliseconds fix it so the bank does not realize a loss, at the client’s expense. In other words, it is a script, a work of art, authored to manage the risk, described as “objective reality.”