With just over a month to go before adherence is expected of market participants, the Global FX Committee (GFXC) has announced that “well over” 100 Market Participants have now made Statements of Commitment to the FX Global Code less than one year after its launch.

The majority of these statements can be found on the eight public registers around the world that have similarly launched since the release of the Code, however there is no obligation to publish a statement on a register.

In light of the growth in public registers, the GFXC says it is developing a Global Index of Registers, which will act as a central location that links the participating public registers, providing a comprehensive view of Market Participants’ commitment to good practices. The Index is expected to launch before the next GFXC Meeting on 27 June 2018. Such a development was flagged in a paper released by the GFXC last year.

Simon Potter, interim chair of the GFXC and executive vice president of the Federal Reserve Bank of New York, and David Puth, vice-chair of the GFXC and CEO of CLS says in a joint statement, “We are encouraged by the use of Statements of Commitment as a measure of overall adoption and promotion of the FX Global Code. The publication of these Statements on public registers provides transparency to market behaviour and we look forward to continued progress across the many diverse segments of the global FX market.”

In addition to the work on promoting broad adoption of the Code and developing the Global Index of Registers, the GFXC has three additional areas of work underway to further study wider market topics. The first is a Cover and Deal Working Group, which is tasked with investigating in more detail the role that these trading models play in the foreign exchange market. This work is being co-led by Matt Boge (Reserve Bank of Australia), David Gracey (Investec), and Akira Hoshino (Bank of Tokyo Mitsubishi UFJ).

The second stream is a Disclosures Working Group. The GFXC says that many responses to the Request for Feedback focused on the role that disclosures can play in establishing clarity around the trading practices of market participants. Given the importance the feedback placed on adequate disclosures providing transparency to the market, this working group will undertake further work on disclosures, including in regards to e-trading platforms. This work is being co-led by Jamie Pfeifer (Federal Reserve Bank of New York), and Darryl Hooker (NEX Markets).

The third stream is a Negative Pre-Hedging Examples Working Group, under which GFXC members have agreed to develop and consider additional negative examples related to Principle 11 of the Code on pre-hedging activity. This work is being co-led by Harri Vikstedt (Bank of Canada), Cedric Beaurain (Société Générale), and Gilberto Romero (Ve por mas).


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Colin Lambert

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