Tag: FX Global Code of Conduct
FX Global Code of Conduct
NEX Markets has released a new report, which it says demonstrates greater transparency and improved behaviour in the FX market since the FX Global Code came into effect in May 2017.
The report, entitled The FX Global Code: Changing Transparency and Behaviour, uses data from NEX Quant Analytics and highlights how the firm has witnessed a significant reduction in hold times, reject rates and a tightening of spreads on the bilateral EBS Direct platform. “This suggests an industry-wide move for greater transparency and improved market behaviour,” the firm says.
Join members of the Foreign Exchange Professionals Association (FXPA) on Wednesday, May 30, for a webinar on the “FX Global Code: One Year Anniversary – Where are We?” at 10am (Eastern US)/3pm (UK)/10pm (Singapore).
This webinar, hosted by the FXPA, takes a look at how firms are approaching adherence to the FX Global Code of Conduct in the FX markets, which was released on May 25, 2017.
Join FXPA’s chairman, Chip Lowry, senior managing director of State Street Global Markets; David Puth, vice chair of the Global Foreign Exchange Committee and CEO of CLS Bank International; Lisa Shemie, FXPA board member and chair of the policy committee, and associate general counsel, chief legal officer of Cboe FX Markets and Cboe SEF at Cboe Global Markets; and Mark Bruce, FXPA’s chair of the Global Code Working Group and head of FICC at Jump Trading.
Portware, a FactSet Trading Solution, has signed up to FX Global Code of Conduct.
This means that the firm has pledged to uphold the six leading principles of the code: ethics; governance; execution; information sharing; risk management and compliance; and confirmation and settlement processes.
“Portware expects its clients to benefit from the commitment to more robust and open practices across their foreign exchange (FX) operations, as well as the increased market liquidity a more trusted FX market is anticipated to generate,” says the firm in a release issued today.
“We firmly believe in standards of transparency, fairness, liquidity, and ethical practices in the FX market,” says Christopher Matsko, head of FX trading solutions, FactSet.
The Global Foreign Exchange Committee (GFXC) has published all responses to its request for feedback on the language set out in Principal 17 of the FX Global Code of Conduct, which looks at the practice of last look. The feedback has been published ahead of an expected decision by the GFXC over whether to change the wording and while it indicates a majority in favour of a strengthening of certain practices involving last look opinion is by no means universally in favour of change.
XTX Markets says it is now operating a ‘zero hold time’ (ZHT) model in its application of last look to its FX counterparty businesses. The firm says it is in response to market structure changes and is in accordance with the principles of the recently published Global FX Code.
Effectively XTX is removing a latency buffer that is applied in the last look window. Under a latency buffer the trade request is held for a brief, prescribed time delay before the price check is performed.
Profit & Loss understands that several initiatives are underway to develop regional registers that may feed into a global repository that lists those FX market participants who have signed the Statement of Commitment to the FX Global Code and further that at least three banks have already signed the Statement of Commitment.
Against this background, the recently-formed Global Foreign Exchange Committee (GFXC) has published what it terms non-binding initial guidance on the establishment of these registers and how they may feed into a Global repository.
ACI – The Financial Markets Association has announced that 2017 it is mandating its 9,000 members to explicitly commit to the FX Global Code of Conduct, the complete version of which will be released on May 25.
“In the three years since the process began to develop a single, global code of conduct for the FX market, the Foreign Exchange Working Group (FXWG) and Market Participants Group (MPG) have made enormous strides forward,” says Brigid Taylor, managing director of ACI.