Press Release: Update from 14 November GFXC meeting

15 November 2017

The Global Foreign Exchange Committee (GFXC) met on 14 November to discuss the feedback received to its Request for Feedback on Last Look practices in the Foreign Exchange Market.

In light of the feedback, the GFXC has concluded that Principle 17 should indicate that market participants should not undertake trading activity that utilises the information from the client’s trade request during the last look window. At the same time, the GFXC also agreed that Principle 17 should clarify the conditions under which certain trading arrangements, often referred to as “cover and deal”, may be distinguished from the last look guidance.

In reaching this judgement, the GFXC balanced the feedback that highlighted the potential for trading activity in the last look window to benefit a client with other feedback that emphasised the risk that clients could be disadvantaged by such trading and that it could undermine the overall integrity of the FX market. In line with the GFXC’s review process, finalised language will be shared with Local Foreign Exchange Committees (LFXCs) before being published by the end of this year.

Chris Salmon, Chair of the GFXC, said: “The GFXC has made a number of decisions that will help to strengthen and embed the Code across the global market. I am grateful for the detailed feedback provided by market participants on last look in response to our Request for Feedback.”

The GFXC has also commissioned further work on two areas. These are “cover and deal” trading arrangements and disclosures regarding last look on anonymous e-trading platforms.  In both cases the objective is to determine whether the GFXC should enhance its guidance about good market practice, potentially through the development of additional illustrative examples for the Code.

Separately, the GFXC reaffirmed the importance of expanding the global reach of the Code and agreed a number of steps to secure this outcome.

Further details about the GFXC’s actions and decisions will be published by the end of the year.


Notes to editors

  • The GFXC was established in May 2017 as a forum bringing together central banks and private sector participants with the aim to promote a robust, liquid, open, and appropriately transparent FX market in which a diverse set of participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available information and in a manner that conforms to acceptable standards of behaviour.The objectives of the GFXC are:
    • to promote collaboration and communication among the Local Foreign Exchange Committees (LFXCs) and non-GFXC jurisdictions with significant FX markets;
    • to exchange views on trends and developments in global FX markets, including on the structure and functioning of those markets, drawing on information gathered at the various FXCs; and
    • to promote, maintain and update on a regular basis the FX Global Code and to consider good practices regarding effective mechanisms to support adherence.
  • Further details on the GFXC and the FX Global Code can be found on the GFXC website:

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Sanjay Odedra
Bank of England Press Office
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