NEX Markets has taken a small but important step to embedding the FX Global Code further into its business by allowing liquidity providers and liquidity consumers who have registered their Statements of Commitment (SoC) to the FX Global Code to identify themselves.
Hugh Whelan, global head of liquidity management at NEX Markets, says the move will help clients identify which of their counterparties on EBS Direct and EBS Select, have signed and registered an SoC on the NEX Global Code Register. “The FX Global Code is an important piece of work that will help build transparency levels in the industry further,” he says. “By allowing clients to see which of their counterparties have attested to the Code, we are enabling them to make more informed decisions about those counterparties who have signalled they intend to act within the guidance established in the Code. We believe this will enhance the trading experience on EBS Direct and EBS Select.”
The attestation will be added to existing monthly reports on EBS Direct and EBS Select activity, which currently include criteria such as volume data, rejections and hold times.
“We have a lot of static data that we wanted to tie back to the Code,” explains Whelan. “This addition to our reporting platform allows us to do that and can help clients signal they have signed up to something important. It will also facilitate more informed discussions between market participants.”
The news was welcomed by Adrian Boehler, co-vice chair of the Global FX Committee, who says, “This is an exciting step in the right direction – publishing the adherence status of market participants in this way makes for more transparent decision-making when it comes to selecting those participants with whom one wishes to transact. And that has to be good for the industry.”
Earlier this month NEX released a report based upon its quant analytics data which indicated improved market behaviour since the advent of the Code.