Press Release: GFXC Selects New Chair and Co-Vice Chairs, Updates on Developments Since Launch of FX Global Code, and Sets Priorities for Year Ahead

27 June 2018

The Global Foreign Exchange Committee (GFXC) met on 27 June. At its meeting, the GFXC agreed a new leadership structure, discussed the committee’s work to date, and agreed priorities for the year ahead. The GFXC meeting was hosted by the South African Reserve Bank in Johannesburg, South Africa.

The GFXC nominated and elected Simon Potter, Executive Vice President of the Federal Reserve Bank of New York, as Chair for a one-year term. It also nominated and elected Adrian Boehler, Global Co-Head of FXLM and Commodity Derivatives at BNP Paribas, and Akira Hoshino, Senior Fellow and Managing Director, Head of Global Markets Trading at MUFG Bank, to serve together as Co-Vice Chairs for a two-year term.

“It is a true honor to have the opportunity to lead the GFXC,” Simon Potter said. “The GFXC made a great deal of progress in its first year, and I would like to thank my predecessors and the newly elected Co-Vice Chairs for their commitment and support. I look forward to continuing the committee’s important work in the year ahead, in ongoing close cooperation with the Local Foreign Exchange Committees (LFXCs) as exemplified by the discussion today.”

“I believe the new leadership structure will enhance the GFXC’s outreach across diverse Market Participants in the industry, and I look forward to working with Simon and Akira,” Adrian Boehler said.

“I am pleased to join my colleagues in promoting the adoption and integration of the Code across global FX Market Participants,” Akira Hoshino said.

The GFXC also agreed to establish a group of buy-side liaisons to serve as lead representatives to the GFXC in order to deepen the committee’s ongoing engagement with the buy-side segment of the global FX market. This group is to include: Stuart Simmons (QIC); Ankur Pruthi (Norges Bank Investment Management); Robbie Boukhoufane (Schroders); Natalia Chefer (DE Shaw); Takayuki Ohkuma (Nomura Asset Management); and Michael O’Brien (Eaton Vance).

The GFXC also welcomed Georgia as its first Associate Member, with participation at the meeting from Archil Mestvirishvili, Vice-Governor of the National Bank of Georgia.

During the meeting, the GFXC also discussed the progress of the working groups it formed to focus on three specific areas: disclosures, “cover and deal” trading activity, and negative examples of pre-hedging in relation to Principle 11 of the FX Global Code (the Code).

  • In exploring the role that disclosures can play in establishing clarity around trading practices between Market Participants, the Disclosures working group made two recommendations for further work, which the GFXC supported: first, to develop and publish a list of questions and characteristics, separate from the Code, that a Market Participant may consider in developing or reviewing their own disclosures; and second, to identify any relevant challenges or risks relating to the provision or receipt of appropriate transparency in the context of anonymous trading activity and consider further work as appropriate. The GFXC stressed the need to continue expanding this discussion across the diverse array of Market Participants.
  • The Cover and Deal working group reviewed its initial findings and proposed to the GFXC that the group conduct further work around the role that disclosures currently play in informing End Users about how their trade requests are being handled by Intermediate Providers that may be utilizing “cover and deal” arrangements. The GFXC supported this proposal and encouraged greater engagement with those Market Participants using such arrangements.
  • The working group established to develop additional negative examples related to Principle 11 on pre-hedging proposed drafts for discussion. The GFXC agreed to add an example to the Code’s Annex, subject to minor revisions made to the draft text, and it will be published upon the release of the minutes from the GFXC meeting. In addition, the GFXC had a productive discussion around pre-hedging and agreed to continue discussing those themes that emerged in work streams going forward.

The GFXC identified four priority areas for the next year, including two new priorities: one focused on buy-side outreach and another on integration of the Code in the FX market. The GFXC also agreed to continue work on disclosures and transparency to strengthen the landscape of FX disclosures, and on work on issues related to “cover and deal” arrangements.

Finally, the GFXC looked back on the accomplishments of the last year, including that well over 300 Market Participants have now made Statements of Commitment to the Code, which demonstrates widespread adoption across the global market. The committee also noted the establishment of 12 public registers, on which Market Participants may make their Statements of Commitment publicly available, and the launch of a Global Index of Public Registers by the GFXC to enable the public to quickly identify whether Market Participants appear on one or more participating public registers. Additional detail regarding the work by the GFXC during the last year will be forthcoming.

For additional details on the GFXC and the FX Global Code, visit the GFXC website:

Press inquiries:

Suzanne Elio
Federal Reserve Bank of New York
(212) 720-6449