Guy Debelle, deputy governor of the Reserve Bank of Australia (RBA), has been named as the next chair of the Global Foreign Exchange Committee (GFXC).

His two-year term will begin in early July, 2019, after he was nominated and elected to the position at the latest two-day GFXC meeting hosted by the Bank of Japan (BoJ) in Tokyo. Debelle will succeed outgoing chair, Simon Potter, executive vice president of the Federal Reserve Bank of New York.

Guy Dubelle, RBA

Debelle comments: “I am very honoured to be nominated to chair the GFXC. I am looking forward to leading the GFXC in continuing the work to promote the integrity and effective functioning of the foreign exchange market. There are a number of challenges facing the GFXC over the next two years that I will seek to actively engage the broader membership of the GFXC in addressing.”

Potter adds: “Guy has played a pivotal role in the global foreign exchange market for many years and was central to the creation of the FX Global Code and of the GFXC. It has been an honor to serve as chair, and I look forward to continuing my engagement with the GFXC.”

At the meeting in Tokyo the GFXC also welcomed the Moscow FX Joint Standing Committee as a full member, with participation at the meeting from Sergey Romanchuk of Metallinvestbank.

Progress Update

Additionally, the GFXC discussed the progress of its four working groups to focus on specific areas: “cover and deal” trading activity, disclosures, buy-side outreach, and embedding the Code.

Simon Porter, NY Fed

The Cover and Deal working group discussed progress made since its report published in February 2019, the goal being to develop examples related to key aspects of “cover and deal” trading. Topics raised included a general lack of awareness around the use of cover and deal trading models and this type of activity across the market. The GFXC agreed to finalise any additional examples in the context of the three-year review and also agreed that examples related to anonymous trading platforms should move to the Disclosures working group for further discussion.

The Disclosures working group, meanwhile, continued its discussion surrounding key aspects of its work, following its February report which defined the areas for improvement in disclosures. The working group focused on articulating key disclosures-related topics that market participants should be mindful of when engaging in anonymous platforms and mapping the flow of information across parties engaging on anonymous trading platforms. The GFXC agreed to further discuss this work, including through a report to generate broader public engagement on the issues.

The Buy Side Outreach working group provided an update on its engagement efforts over the preceding six months, presenting several materials and tools it has developed in order to help socialise and increase adoption with buy side firms. The GFXC agreed to finalise many of these materials for publication following the meeting.

The Embedding the Code working group reviewed how the Statement of Commitment has been used by market participants, in particular since the launch of the Global Index in May 2018. As a result of this review, the GFXC agreed to streamline existing guidance and, where relevant, produce new guidance to aid market participants in the process of signing up for the Global Code. The group also discussed the structure, timelines and target population for the 2019 GFXC survey, which is expected to take place in the second half of the year.

Looking to the future

The GFXC has agreed to begin soliciting feedback from market participants in preparation of holding a three-year review of the FX Global Code, in accordance with the GFXC’s Terms of Reference. It has also agreed to adopt revisions to the Terms of Reference, including an update on member responsibilities and representation to the GFXC. Additional detail on the leadership structure and responsibilities of the Secretariat and new sections on working groups and competition guidelines are also set to be added to the terms.

Lizzy Birmingham

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