Press Release: GFXC Meets in Paris to Discuss Ongoing Efforts on Priority Areas

Updates on Cover and Deal, Disclosures, Embedding the Code and Buy Side Outreach Working Groups

29 November 2018

The Global Foreign Exchange Committee (GFXC) met 29 November, as part of a two-day meeting in Paris, France, which was hosted by the Banque de France.

On the first day of its meeting, the GFXC discussed the work of its key initiatives and working groups as it works to support the implementation of the Foreign Exchange Global Code (Global Code), and took steps to continue moving that work forward.

  • At its previous meeting in June 2018, the GFXC asked the Cover and Deal working group to focus on the role disclosures play in informing how trade requests are being handled in the context of ‘cover and deal’ models and what challenges, if any, they might face in this regard. The working group subsequently engaged market participants who use these types of trading arrangements to solicit feedback on these issues. The working group proposed that it would publish its analysis and conduct further engagement to raise awareness around the general structure of such trading arrangements and to highlight certain principles of the Global Code that may be particularly relevant to such trading arrangements. The GFXC supported publication of this material, which will be a useful reference.
  • Following discussions at the previous GFXC meeting, the Disclosures working group has continued its efforts to explore the role that disclosures can play in establishing clarity around trading practices between market participants and during various types of foreign exchange (FX) market activities, from pricing to handling of confidential information. The working group presented a series of characteristics and topics to highlight as a voluntary tool for promoting transparency in an effort to support the efficacy of disclosures, encourage an associated dialogue, and thus promote adoption of the FX Global Code. In the context of anonymous trading platforms, the working group provided an update on the continuing work to evaluate potential challenges to appropriate transparency. The working group also proposed, and the GFXC agreed, that it would publish its findings around the general disclosures landscape.
  • As part of the “Embedding the Code” working group, which was established following the June 2018 meeting, the GFXC discussed findings from its survey to measure the effects of the FX Global Code, one year on. The preliminary results from this survey – the GFXC’s second such survey, conducted from September to October 2018 by the working group – show that 1) the vast majority of respondents are aware of the GFXC, and the Global Code; 2) adoption of the Global Code has grown since 2017, though adoption rates differ by sector, and most respondents use the Statement of Commitment; 3) the Global Code is primarily implemented at the business line level, by a variety of approaches; and 4) most respondents consider the Global Code to have had a positive effect on FX markets. The working group proposed publishing a summary of the results, and the GFXC agreed.
  • The GFXC determined at its last meeting that additional work should be done to build on the momentum of buy side adoption of the FX Global Code. The Buy Side Outreach working group was established thereafter to articulate the benefits and challenges related to adopting the Global Code for these market participants and to expand the GFXC’s engagement in buy-side focused industry events and communities. The working group outlined the work it has done so far to take stock of the buy side landscape, to generate structured feedback and to clarify proportionality for these firms. The working group proposed that it organize a dedicated event for the buy side around the Global Code, and the GFXC agreed. Additional details about the event will be forthcoming.

Finally, the GFXC Secretariat discussed the growing adoption of the FX Global Code, as exhibited through additional Statements of Commitment – a tool that was developed for Market Participants to voluntarily demonstrate their recognition of, and commitment to, adopting the good practices set forth in the Code. The GFXC recently updated the Global Index of Public Registers (Global Index) to include the Central Bank Register from the Bank for International Settlements (BIS) launched on 2 November. This new register further demonstrates central banks’ strong intention to support and promote adherence to the FX Global Code (Code) and further adoption across the global market and already includes Statements of Commitment from nearly 40 central banks. With this addition, the Global Index now includes just over 600 entries, representing Market Participants and how they do business across jurisdictions, from 12 participating public registers.

The second day of the GFXC meeting will feature updates from Local Foreign Exchange Committees (LFXCs), and a presentation on reference rate reform and its applicability to FX markets.

The GFXC meeting is being led by its Chair, Simon Potter of the Federal Reserve Bank of New York, and its Co-Vice Chairs, Adrian Boehler of BNP Paribas and Akira Hoshino of MUFG Bank.

Additional materials from the work discussed above, along with the minutes from the meeting, will be published in the new year.

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