The 2019 Global Foreign Exchange Committee (GFXC) survey of attitudes towards the FX Global Code finds that satisfaction with the document remains high and that adoption is growing.

The latest survey had 354 respondents, up from 303 in 2018 and as with the previous survey the majority came from Asia Pacific with 44%, namely Singapore which provided 49. The UK and Japan both had 43 respondents, while India was again high up the ladder with 30, followed by the US with 22. There were 181 new respondents to the survey, while 86 said they had filled in all three years’ surveys.

Almost 70% of respondents believed the Code had had a ‘very positive’ or ‘positive’ impact since launch and just over 78% said they were ‘very familiar’ or ‘familiar’ with the Code’s contents. More importantly for the GFXC as it seeks to build awareness and adoption of the Code, 61% of respondents said they had fully adopted the Code, up from 55% in 2018. The average time taken to adopt was put at 8.68 months and, interestingly given how the buy side is generally perceived to have been slow in embracing the Code, the GFXC says the average adoption time for a “medium-sized” buy side firm was six months. While 39% of the sell side respondents said they believed adoption was ‘very comprehensive’ or ‘comprehensive’, just 22% of buy side firms felt the same way.

While 93% of respondents said their firm had signed a Statement of Commitment (SoC), only 68% had published it to a public register. The majority of firms still expect their counterparties to have signed an SOC, however only 8% required it as a precondition for trading – as was the case in previous surveys, most respondents said the failure of a counterparty to provide an SoC would not necessarily mean they would not trade with that firm, rather the majority said they would decide on a case-by-case basis.

Colin Lambert

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