Press Release: GFXC publishes revised last look guidance and reconfirms its commitment to promoting the Global Code

19 December 2017

The Global Foreign Exchange Committee (GFXC) has today published an updated FX Global Code incorporating revised guidance on trading in the last look window, known as Principle 17.

The revised Principle 17 states that market participants should not undertake trading activity that utilises information from the client’s trade request during the last look window. It also describes the conditions under which certain trading arrangements (sometimes referred to as ‘cover and deal’) may be distinguished from this guidance. Two related examples have also been added to the Annex. Further details are available in a paper published today by the GFXC on the Request for Feedback.

Chris Salmon, Chair of the GFXC, said: “The revised guidance on last look demonstrates that the GFXC is committed to ensuring the FX Global Code keeps pace with a fast evolving market. This will support our objective of improving market practice and rebuilding trust in the FX market. With the last look consultation completed, the priority for the first half of 2018 is to promote widespread commitment to the Code.”

David Puth, Vice-Chair of the GFXC and CEO of CLS, added: “Since the launch of the Code in May, the GFXC has been working to resolve outstanding issues and consistently identify new areas of focus to ensure that the principles evolve seamlessly with good market practice. In this instance we received meaningful market feedback to which the GFXC responded appropriately and in a timely manner. Our focus will now shift to encouraging the broad adoption of the Code by all major market participants during the first half of 2018.”

The GFXC also agreed that it should continue to facilitate adoption of the Code as a global public good and members agreed to continue promoting the Code across all industry segments. The GFXC agreed to create a new associate member category to facilitate broad geographic adoption of the Code.

Separately, the GFXC has published minutes from the 14 November meeting and revised terms of reference to reflect changes designed to expand its global reach. A paper summarising responses to the FX Global Code Survey, which aims to measure the baseline level of awareness and adoption of the FX Global Code by market participants, has also been published.

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.
  • The GFXC last met on 14 November to discuss the Responses to its Request for Feedback on Last Look Practices in Foreign Exchange Markets and provided an Update immediately thereafter.
  • 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
020 7601 6130