Press Release: GFXC publishes Request for Feedback on draft guidance papers for pre-hedging and last look

11 May 2021

The Global Foreign Exchange committee (GFXC) is seeking industry feedback on draft guidance papers for the usage of ‘pre-hedging’ and ‘last look’ within foreign exchange markets. The papers are intended to promote wider knowledge and understanding of these practices and highlight how they relate to the FX Global Code’s existing principles for good practice in these areas.

When finalised, these guidance papers will not become part of the Code, but are intended to be read alongside the FX Global Code. The guidance papers outline the expectations that market participants should have in regards to the usage of pre-hedging and last look, as well as the controls and disclosures that could help align practices with the Code.

The guidance papers have been developed by Working Groups that brought together a globally diverse range of market participants, including participants from both the buy-side and sell-side.

Feedback on the draft guidance papers is sought by 31 May 2021. After considering the feedback received, the papers will be finalised for approval by the GFXC at its June 2021 meeting, following a fatal flaw review by the local FXCs. The final versions of the papers will be published shortly after.

The GFXC is currently reviewing the responses to its earlier Request for Feedback on the other focus areas for its 3-year review of the Code (anonymous trading, algorithmic trading and transaction cost analysis, disclosures and settlement risk). Those proposals will also be finalised for approval at the GFXC’s June meeting.

Press inquiries:

Cecile Lefort
Reserve Bank of Australia