Exchange Traded Spot FX?

i wonder why has none of the major exchanges in the world have created a FX exchange?
Offering transparency, clarity, security, counter party risk management etc.

Just recently the India's Bombay Stock Exchange with local banks opened a Currency Futures exchange called United Exchange ( It has limited offerings but the idea is good)

Would it not be great for clients if CME/CBOT/NYSE/LSE/Tokyo/ ASX/ German exchanges get together and create one single marketplace

Any takers?

The main issue is , where would such an exchange be ?
Since the geographical location is very important because the nearer you are to the exchange the faster you receive the price data , therefore no one is willing to give that advantage to any of the others market places, since it would drawn all the market players and their resources to that exchange only.
Also since that market place would be for most of the practitioner outside of their own juridical influence ,regulation and oversight of that marketplace wouldn't be under their oversight.

They tried already, it failed miserably.

http://www.finextra.com/news/fullsto...wsitemid=15267

"nearer you are to the exchange the faster you receive the price data"
Does that mean with stock exchanges
if you are near NY, then your are better off?
Or
In Australia since there is only one ASX which runs on Sydney time..people trading from Sydney than Perth are better off?
Perth is 4000 Km away from Sydney

Physical distance is not a factor anymore to regular trading. Only a minimal advantage for those into high frequency trades.