10 December 2025
The Global Foreign Exchange Committee (GFXC or Committee) held a two-day virtual meeting on 4–5 December 2025, which was hosted by the Bank of Mexico. Gerardo García (GFXC Chair) initiated the meeting by providing an update on the growth of the Statement of Commitment entries in the GFXC Global Index of Public Registers. The Global Index currently includes 1,388 entries.1
The FX Settlement Risk Working Group presented the key considerations on a paper for FX market participants ahead of the upcoming transition to T+1 securities settlement across the European Union2, United Kingdom, Switzerland and Liechtenstein in October 2027. From an FX perspective, the North American transition to T+1 securities settlement proceeded smoothly. However, greater variation in market structures across European jurisdictions could increase the complexity of their transition. The Committee agreed that market participants should initiate preparations for the transition at the earliest opportunity and also approved the publication of the Working Group’s paper.
For their part, the FX Data Working Group confirmed its intention to promote the adoption of the updated Disclosure Cover Sheets for liquidity providers and platforms. The Working Group sought feedback on its work to examine the accessibility of freely available spot reference rates, which would enable clients to assess the quality of their execution.
The Motivation for Adherence Working Group explained that their buy-side engagement had focused on corporate, asset manager, and hedge fund outreach. Initiatives to further promote awareness and provide education on the FX Global Code (the Code) were also discussed.
Next, the Committee was updated on recent market developments from several Local FX Committees (LFXCs). A common theme was the resilience of the FX market and low measurements of volatility, despite an uncertain environment marked by trade and geopolitical tensions. The Committee also noted the decline in USD hedging activity during the second half of the year, and emphasised that monetary policy, fiscal sustainability, trade negotiations, and carry trade (the latter for emerging market economies) had been significant drivers of FX markets. LFXCs also presented a summary of outreach initiatives planned to foster adherence to the Code in their respective jurisdictions, and the renewal of the Statements of Commitment following the 2024 updates to the Code.
Representatives from the International Organization of Securities Commissions (IOSCO) updated on their Final Report on Pre-hedging. IOSCO emphasised its comprehensive consultation process, the review of the definition of pre-hedging, and outlined recommendations for the industry and considerations for clients. The Committee agreed that, given the global nature of the FX market, the implementation phase will require significant engagement from all market participants.
The Bank for International Settlements (BIS) presented a general overview of key statistics on trading volumes by instrument, jurisdiction, and execution methods. This overview covered themes that have emerged from the 2025 BIS Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter Derivatives Markets. It was noted that trade tensions during April may have had a significant impact on the increase in volumes measured during the survey period. An increase in the activity in FX forwards, swaps, and options was also observed, which was potentially driven by FX hedging activity.
Representatives from the International Swaps and Derivatives Association (ISDA) provided an update on the new FX and Currency Option Definitions aimed at aligning the definitions with evolving market practices. The drafting work is scheduled for completion in December 2025, allowing for a two-year market implementation period before the new definitions are put into use at the end of 2027.
A panel discussion was held on the potential impact of stablecoins on FX markets. Panellists highlighted the benefits of stablecoins for payments, settlements, and programmability. However, they concur that greater regulatory clarity is needed to safeguard financial stability. The panel noted that while stablecoins have been receiving notable market attention, the development of other digital assets, such as tokenised-deposits, bear watching.
The farewell to Simon Manwaring (NatWest Markets), the outgoing Co-Vice Chair, took place, which was followed by the formal endorsement and welcome of Manuel Mondedeu (CIBC Capital Markets), the newly appointed Co-Vice Chair. The Committee conveyed its gratitude to Mr Manwaring for his unwavering commitment and dedication as Co-Vice Cahir over the last three years.
The GFXC’s next steps were discussed, covering priorities in a work plan for 2026, which also involved laying the groundwork for the next Code review, and to strengthen the engagement with organisations and associations of the FX industry.
The next GFXC meeting will take place in Toronto, Canada, on 4-5 June 2026.
The minutes of this meeting will be published in January 2026.
For additional details on the GFXC and the FX Global Code, please visit the GFXC website.
Press inquiries:
GFXC Chair Office
Banco de México
media@globalfxc.org