The 2019 Global Foreign Exchange Committee (GFXC) survey of attitudes towards the FX Global Code finds that satisfaction with the document remains high and that adoption is growing. The latest survey had 354 respondents, up from 303 in 2018 and as with the previous survey the majority came from Asia Pacific with 44%, namely Singapore […]
Tag: Statement of Commitment
Statement of Commitment
Qantas has become the first Australian corporate treasury to sign a Statement of Commitment (SoC) to the FX Global Code. The SoC has been listed on the AFMA/ACI Australia FX Global Code Register. In a release, AFMA says widespread adoption of the Code contributes to the effective functioning of the foreign exchange market and that […]
The FX Global Code witnessed another small milestone this when BayernLB became the first Landesbank in Germany to commit by signing a Statement of Commitment, which it has posted to the register hosted by CLS Group.
The Code was launched in its entirety in May 2017 and since then a steady stream of market participants have singed up to adhere to its principles, attesting that they will operate in a fair and transparent manner and have internal workflows that are in line with the guidelines.
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
Moscow Exchange says it has signed a statement of commitment to the FX Global Code, pledging to support robust, fair, liquid, open and transparent foreign exchange markets.
The Code (is a set of global principles of good practice in the foreign exchange market, developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. It was developed by a partnership between central banks and market participants from 16 jurisdictions around the globe.
The Global Foreign Exchange Committee 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.
The Federal Reserve Bank of New York has released its Statement of Commitment to the FX Global Code.
Using the common language of these releases, the New York Fed says it has reviewed the content of the Code “and, in issuing this Statement of Commitment, has confirmed that it acts as a Market Participant as defined by the Code. The New York Fed is committed to conducting its foreign exchange market activities, when acting as a Market Participant, in a manner consistent with the principles of the Code.”
Pragma has announcesd it has committed to adopting the principles of the FX Global Code as a market participant.
The FX Global Code was launched in partnership with policymakers and market participants, and provides a common set of guidelines to promote the integrity and effective functioning of the market. By signing a statement of commitment, Pragma affirms that the principles outlined in the Code represent a series of best practices to promote a robust, fair, liquid and transparent FX market.
With just over a month to go before adherence is expected of market participants, the Global FX Committee (GFXC) has announced that “well over” 100 Market Participants have now made Statements of Commitment to the FX Global Code less than one year after its launch.
The majority of these statements can be found on the eight public registers around the world that have similarly launched since the release of the Code, however there is no obligation to publish a statement on a register.
So what that yet another bank has issued a boilerplate last look disclosure? Well actually this typifies the culture of “adequate disclosure” that exists in foreign exchange markets at the moment. Yes, it is a step up from previous efforts, but is it enough to rebuild trust? The FX industry must continue working towards true transparency of action, but when it cannot even deliver a coherent message on the foundation stone of its rebuilding efforts, are we right to be sceptical of its efforts?