Hotspot says it has aligned its activities across its global business with the principles of the FX Global Code, issuing a statement of commitment today.
Following a comprehensive internal review, Hotspot says that its business practices, procedures, compliance framework and disclosure standards have been augmented to fully reflect the Code’s principles, as published in May 2017.
The platform has also conducted a series of customer meetings to clarify how Hotspot’s adherence will impact them and their business. These efforts, which started over a year ago and developed as the Code’s drafting progressed, will remain a focus for Hotspot as adoption of the Code increases across the FX community and as its usage starts to further inform industry behaviour.
A number of CBOE Holdings and Hotspot associates played an active role in the Code’s development and continue those efforts in a variety of industry groups. These include the Market Participants Group, the Financial Markets Lawyers Group, and the Foreign Exchange Professionals Association, of which the platform is a founding member.
Bryan Harkins, head of US equities and global FX, at CBOE, says: “We believe that the Code will foster a more robust, open, liquid and transparent FX market, and as a result, that the industry will increasingly demand adherence to the Code from counterparties and trading venues. For these reasons, our early adoption of the Code’s principles was a very straightforward decision, and we anticipate other market participants will follow our lead in short order.”
In a release issued today Hotspot claims that adherence to the Code is a “natural progression” for the platform, pointing out that it was the first venue to announce market maker standards for liquidity providers, particularly as they relate to the privilege of providing non-firm liquidity.
These rules, first published in May 2015 and updated regularly since, are designed to ensure fairness and transparency among users. In addition, Hotspot publishes and continuously updates its operating procedures, claiming that it is “setting the standard in disclosure”.
In the release, Hotspot also highlights that it maintains a number of volume metrics on its website in an effort to increase transparency, including intraday, firm and currency-pair volumes, as well as daily, monthly and quarterly figures.