5 June 2023
At the close of the two-day GFXC meeting in Mexico City, Andréa M. Maechler, member of the Governing Board of the Swiss National Bank, relinquished her role as GFXC Chair following her appointment as Deputy General Manager of the Bank for International Settlements (BIS). The GFXC elected Gerardo Israel García López, General Director of Central Bank Operations at the Banco de México, as its new Chair, with immediate effect. Mr García has over twenty years of experience at the Banco de México and is a member of the BIS Markets Committee.
In her role as GFXC Chair, Ms Maechler used the interim period before the next review cycle of the FX Global Code (the “Code”) to explore how innovative approaches and new technologies could affect the functioning of FX markets, particulary in the area of settlement. She also further strengthened adherence to the Code and said: “I thank my colleagues, members of the GFXC and local FX committees for the measures taken, including the introduction of the Proportionality Self-Assessment Tool launched today on the GFXC website.” This tool has been developed to support the process of identifying which of the 55 Code Principles apply to market participants based on their activities in the FX markets. By answering a series of questions, market participants can generate an easy-to read report highlighting the Principles most relevant to them.
The FX Code adherence working group gave an update on its efforts to promote inclusion of the Code in financial education and to partner with rating agencies to recognise the Code within their Environmental, Social and Governance (ESG) assessment criteria. Ms Maechler praised both initiatives as very effective in further embedding the Code into FX markets and encouraged work in these areas to continue.
Furthermore, the GFXC announced that it will conduct a survey in September 2023 to measure the effectiveness of the Code as revised in July 2021 and its associated material. The information collected through the survey will assist the GFXC in determining where to focus the next Code review. The incoming GFXC Chair said: “I am honoured to be shaping this central work, which ensures that the Code remains relevant for the rapidly evolving FX markets. I am confident that a broad set of market participants will leverage this opportunity to further develop best practices by taking part in the survey.”
GFXC members were updated on efforts by local FX committees to improve the data collected in relation to FX settlement risk. There was also a discussion of a possible role for the GFXC in coordinating future work on this topic.
Finally, the GFXC was updated on Code outreach activities by local FX committees. Members also discussed the conditions in the FX markets, and the possible implications of shortening the US securities settlement cycle from T+2 to T+1, which comes into effect on 28 May 2024.
The minutes of this meeting will be published in July 2023.
For additional details on the GFXC and the FX Global Code, please visit the GFXC website.
Press inquiries:
Claudia Aebersold
Swiss National Bank
media@globalfxc.org