The forex market, being the largest and most liquid market in the world, is subject to regulation by several governmental and independent bodies around the world. These supervisory bodies set standards that all brokers under their jurisdiction, including those dealing with AES, must comply with. Forex market regulation refers to the rules and laws that firms operating in the forex industry must follow. The purpose of regulation is to protect traders from undisclosed financial risk and fraud. Due to its decentralized and global nature, the forex market has been more prone to fraud and has been less regulated than other financial markets. There is no single global body governing the forex market. Instead, each country has its regulatory authority that lays down the framework of rules that are to be complied with when operating in the forex trading market. Regulation and enforcement vary significantly from country to country. In the United States, for example, the Commodities Futures Trade Commission (CFTC) and the National Futures Association (NFA) have been tasked with the challenging job of regulating forex trading. In Europe, regulators have tightened regulations to protect traders in recent years, with increased oversight from regulatory bodies such as the SEC in the US, the FSA in the UK, and the CySEC in Europe. Typically, Forex brokers are required to deal with top-tier financial institutions and liquidity providers, as well as to keep their client funds in separate accounts. Every country has its regulatory authority. For instance, in Australia, it’s the Australian Securities and Investment Commission (ASIC), in Canada, it’s the British Columbia Securities Commission (BCSC) and the Canadian Investor Protection Fund (CIPF), and in the UK, it’s the Financial Services and Markets Authority (FSMA). These regulatory bodies ensure that forex trading is ethical and fair for all involved. They subject financial institutions to certain requirements, restrictions, and guidelines. Licensed forex brokers are subject to recurrent audits, reviews, and evaluations to ensure that they meet the industry standards. In conclusion, while AES is not directly regulated, the forex brokers that deal with AES are regulated by various financial regulatory bodies around the world. These bodies ensure that the brokers adhere to certain standards and guidelines, thereby providing some level of protection to the traders.