The Global Foreign Exchange Committee (GFXC) has launched a Global Index of Public Registers to serve as a central reference point for demonstrated commitment to the FX Global Code.
Following the initial publication of the Code in May 2017, Market Participants expressed interest in developing public registers as repositories of individual Statements of Commitment to the Code. The GFXC published recommended characteristics for public registers in July 2017, and several public registers have since been established.
The Global Index will aggregate information from participating public registers and make it available in a single location. It also provides a search function, allowing the public to quickly identify whether a Market Participant has published a Statement of Commitment on a participating public register, thus demonstrating their recognition of and commitment to adopting the good practices set out in the Code in this manner.
The full Code was launched at the end of May 2017 and at the time an unofficial 12 month window was put in place for market participants to commit to and sign a Statement of Commitment. It is not mandatory for a firm to publish a Statement on a public register, however, thus, whilst most firms have done so, others that have committed may not appear on a register.
“The Global Index shows the GFXC’s commitment to promoting and encouraging widespread adherence to the Code through voluntary adoption of a Statement of Commitment,” says Simon Potter, interim chair of the GFXC and executive vice president of the Federal Reserve Bank of New York. “We hope that this new tool provides greater awareness of the industry’s overall commitment to promoting a robust, fair, liquid, open, and appropriately transparent FX market.”
David Puth, vice-chair of the GFXC and CEO of CLS, adds, “Market Participants place great value on the integrity and effective functioning of the FX market and I am confident that the Global Index and Public Registers will contribute to these important goals. The Global Index has been established in response to industry demand, and we are very pleased to launch the Global Index today.”
In a statement following the release, NEX Group, which operates a public register, says, “In November 2017, NEX launched the NEX Register to help promote the adoption to the Code’s principles and has gathered the widest range of Market Participants in one register, bringing together Market Participants from across the industry is vital to the success of the Code. With the introduction of the GFXC’s Global Index, we hope to see the numbers and range of those looking to publicly state their commitment to the Code accelerate.”
The Global Index has been released at the same time as the Monetary Authority of Singapore (MAS) published its own Statement of Commitment to the Code. The MAS says it will adhere to the principles of the Code when acting as a market participant and ensure that its internal practices and processes are aligned with these principles. It adds that it “strongly encourages” wholesale FX market participants in Singapore to demonstrate adherence to the Code, to promote the integrity and effective functioning of the global FX market.