4 October 2018
On September 28, 2018, the Global Foreign Exchange Committee (GFXC) launched a new survey that aims to measure awareness and adoption of the FX Global Code (the Code) among market participants. The information collected through the survey will support the GFXC in promoting, maintaining, and updating the Code and will help determine effective mechanisms for fostering adherence. The GFXC will consider the results of the survey at its next meeting, which will take place on November 29-30 in Paris, France.
This survey will follow up on the initial survey the GFXC conducted last year that received more than 500 responses. The results of that survey were published in December 2017.
Ahead of its meeting in Paris, the GFXC is also providing an update on the working groups it created to focus on four priority areas: “cover and deal” trading activity, disclosures, buy-side outreach, and integration of the Code in the FX market.
- The Cover and Deal working group has been expanded with additional members, including those with firsthand experience with such arrangements. The working group is currently drafting a summary highlighting how the Code’s good practice recommendations may apply in the context of cover and deal arrangements with a particular focus on disclosures. The working group intends to present on its findings at the next GFXC meeting and produce a publication shortly thereafter.
- The Disclosures working group has expanded its membership, drawing in new members from the buy side and from additional FX trading platforms. The group is currently drafting a list of questions and/or characteristics to serve as a voluntary reference tool for market participants who are developing, receiving, or reviewing disclosure documents. The working group intends to publish this list shortly after the next GFXC meeting. In addition, the working group is discussing any relevant challenges to appropriate transparency in regard to anonymous trading activity and will consider further work as appropriate.
- The Buy-Side Outreach working group is being led by the European Central Bank in close consultation with the buy-side liaisons established in June. The group is working to articulate benefits and challenges related to adopting the Code. This group also is working to expand the GFXC’s engagement in buy-side-focused industry events and raise awareness of the Code across the buy-side community. This work is expected to continue beyond the next GFXC meeting.
- The Embedding the Code working group, which is being led by the Bank of England, has focused its initial efforts on developing the aforementioned survey of market participants to follow up on the one conducted shortly after the launch of the Code. The results of the survey will help shape the group’s continued efforts to promote the embedding and integration of the Code into the fabric of the Global FX market.
For additional details on the GFXC and the FX Global Code, visit the GFXC website: www.globalfxc.org.
Press inquiries:
Suzanne Elio
Federal Reserve Bank of New York
(212) 720-6449
suzanne.elio@ny.frb.org