Press Release: GFXC meets to discuss work programme progress to further strengthen FX Global Code adherence, especially on buy side, and endorse new Co-Vice Chair

6 December 2022

At its video conference on 5-6 December 2022, the Global Foreign Exchange Committee (GFXC) nominated and elected Simon Manwaring, Global Head of Trading and Sales at NatWest Markets, as Co-Vice Chair for a two-year term to succeed Richard de Roos of Standard Bank. Simon Manwaring said “it is a great honour for me to continue to bring the sell-side perspective to the GFXC leadership structure, and to serve together with the Chair, Andréa M. Maechler of the Swiss National Bank, and my colleague from the buy side, Stefanie Holtze-Jen of Deutsche Bank.”

To support market participants with less complex FX activities, GFXC members agreed to commission a Digital Proportionality Tool for facilitating FX Global Code adherence. This tool to be made publicly available on the GFXC website in 2023, will organise the 55 FX Global Code Principles based on a participant’s role in the foreign exchange market with the intention of streamlining the adherence process. A wide range of market participants saw this tool as a useful mechanism for facilitating adherence.

The working group lead, Richard de Roos, explained that “this tool enables those market participants with less complex activities in the FX market to focus their adherence efforts on the Principles most relevant to them.” GFXC Chair Andréa M. Maechler expressed her expectation that this mechanism will give new impetus to the promotion of the Code: “Since the update of the Code in July 2021, more than 80 market participants have newly signed up, in addition to the many others who have refreshed their earlier statement. I am convinced that the Digital Proportionality Tool will attract more new signatories to the Code, especially from the still underrepresented buy side community.”

The head of the second working group, Stefanie Holtze-Jen, presented the three-pillar approach to raising motivation for adherence to the Code. GFXC members supported the initiatives to increase visibility, including by partnering with industry groups and enhancing Code education and training. For example, the possibility of a partnership with rating agencies was explored to achieve linking the Code to the ‘G’ (governance) embedded in the Environmental Social Governance (ESG) principles. Stefanie Holtze-Jen said: “Creating tangible benefits and lowering barriers to adherence for the buy side are key for further anchoring the Code in the FX market.”

In addition, GFXC members agreed to pick up the discussion on data availability at their June 2023 meeting with the view of including this topic in the next review of the Code. The cost aspect of data was not within the remit of the GFXC, but the Committee’s considerations could include enhanced transparency on what happens to user-generated trade data, improved data access to benchmark execution of FX derivative transactions, and greater transparency of trade execution data in case of delegated execution.

The meeting continued with the President Delegate of the Financial Markets Association (ACI FMA) providing an overview on recent initiatives. In addition, GFXC members were informed on a joint project by the BIS Innovation Hub and three central banks (Swiss National Bank, Banque de France, Monetary Authority of Singapore) known as “Project Mariana”. This project explores innovative approaches to price and settle cross-border transactions in hypothetical central bank digital currencies (CBDCs) issued by the participating central banks using decentralised technologies.

Finally, the GFXC was updated on Code outreach work by local FX committees. Members also discussed conditions in the foreign exchange markets of both emerging and developed countries, taking into account heightened financial market volatility and the outlook for year-end funding.

The minutes and the compendium of market conditions and Code outreach work will be published in January 2023.

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

Press inquiries:

Claudia Aebersold
Swiss National Bank