9 October 2024
The Global Foreign Exchange Committee (GFXC or Committee) is seeking feedback from industry stakeholders on proposals arising from its Three-Year Review of the FX Global Code (the Code). The proposals include amendments to both the Code and the Disclosure Cover Sheets for Liquidity Providers and Platforms.
The GFXC is issuing a Request for Feedback on potential Code modifications to clarify Market Participants’ responsibility to mitigate FX Settlement Risk, and to enhance market transparency on FX transactions and the use of FX data. Changes to five of the Code’s fifty-five principles are proposed (P9, P10, P35, P50 and P51).
Furthermore, the GFXC is seeking feedback on the proposed amendments to the Disclosure Cover Sheets for both Liquidity Providers and Platforms. Such amendments focus on data disclosures with the objective of increasing transparency and facilitating the comparison of FX data usage derived from client interactions. This will assist Market Participants in making informed decisions about their FX business relationships.
Gerardo García, GFXC Chair, commented: “While the Code is still considered fit for purpose, the Committee must ensure it remains current with industry practices and market developments. The proposed changes focus on key areas that the GFXC identified from the invaluable input received from the BIS Markets Committee, local FX committees (LFXCs) and market participants. The amendments are designed to enhance guidance on FX Settlement Risk mitigation practices, encourage appropriate reporting requirements and promote greater transparency on the utilisation of FX data”.
The GFXC has already engaged in extensive consultation with the members of LFXCs on the proposals developed by our Working Groups. We are now seeking input from other market participants, such as financial institutions, central banks, asset managers, sovereign wealth funds, corporate treasury departments, family offices running treasury operations, custodians, benchmark execution providers, FX E-Trading Platforms, affirmation and settlement platforms, prime-brokers, as well as from other types of persons or organisations which generally engage in FX market activities.
We kindly request feedback on the proposed amendments to the Code and to the Disclosure Cover Sheets by 25 October 2024. Following consideration of the feedback received, the proposals will be finalised and reviewed by the LFXCs for approval by the GFXC at its meeting in December 2024. The revised Code will be published at the end of the year, followed thereafter by the updated Disclosure Cover Sheets.
Press inquiries:
GFXC Chair Office
Banco de México
media@globalfxc.org