The first thing to note is that the In the FICC of it podcast now available in the iTunes Store, so it will be even easier for you to get your weekly fix of our editors, Colin Lambert and Galen Stops, ranting and rambling about all the latest and greatest news in the FX industry each week! […]
I may, not for the first time, be reading too much into a brief sentence, but I found it significant in my conversation with Simon Potter, outgoing chair of the Global FX Committee, that when talking about the review of the Code he mentioned “the handling of larger orders” as one area of possible review. […]
Outgoing Global FX Committee chair Simon Potter remains optimistic about the impact of the FX Global Code and has signalled a busy work schedule for the Committee and its working groups over the coming year. In an interview withProfit & Loss Potter outlines the continuing work of the separate streams established by the GFXC, but makes […]
Guy Debelle, deputy governor of the Reserve Bank of Australia (RBA), has been named as the next chair of the Global Foreign Exchange Committee (GFXC). His two-year term will begin in early July, 2019, after he was nominated and elected to the position at the latest two-day GFXC meeting hosted by the Bank of Japan […]
As part of its report on disclosures and transparency, the Global Foreign Exchange Committee (GFXC) has unveiled some initial views on a second stream of work by its disclosures working group on practices in the anonymous e-trading platform sector.
The work centred on the knowledge of counterparties and expectations around counterparty behaviour, although the report does note that given that the landscape of e-trading platforms is diverse with different features and business models across infrastructure providers and users, the working group will continue work to consider this portion of the disclosure landscape
A Global Foreign Exchange Committee working group has released a paper on the role of disclosure and transparency in FX markets intended to serve as a source of information for market participants seeking to learn about, develop and navigate the FX disclosure landscape. The paper is the work of a special working group set up by the GFXC to study the issue after feedback on last look practices highlighted concerns amongst participants that disclosures and transparency levels could be enhanced.
The 2018 FX Global Code Survey results have been released and while, expectedly, the last year saw significantly increased adoption rates amongst firms, there are areas of potential concern for proponents of the Code.
The survey aims to measure the awareness, adoption, implementation, and effects of the Global Code for market participants. The GFXC says the information collected through the 2018 survey is an important input as it continues to promote, maintain, and update the Code and embed it in the fabric of foreign exchange markets.
A second working group set up by the Global Foreign Exchange Committee (GFXC) in 2018 to look at how market participants operating the “cover and deal” model utilise last look has published a paper highlighting areas in which it believes practice can be improved. Primarily, the report stresses the importance of those operating cover and deal models ensuring that there is adequate disclosure of the practice, the way in which it is being used, and the clarification of the role and capacity in which the participant acts.
The FX industry is advancing how it deals with certain issues, but the pipeline of areas in need of clarification and further debate shows little sign of slowing down. Two areas that concern me at the moment are exactly how platform operators are enforcing their rulebooks – are they being fair and balanced to both LPs and LCs? – and exactly what constitutes “full amount” trading? An open and data-backed discussion will solve the latter, but I wonder if we need an industry ombudsman for the former?
Much has been made of the low buy side sign up to the FX Global Code, but as Colin Lambert finds out, it is likely only to be a matter of time.
Talk to senior members of the Global FX Committee and one can discern a sense of exasperation when they are asked (probably for the tenth time that day) about the lack of buy side adoption of the FX Global Code. The exasperation stems from what is the thorn in the side of the GFXC that is low adoption rates.