The Importance of Disclosures and Transparency in the FX Market

The FX Global Code (Code) exists to support a robust, fair, liquid and appropriately transparent market. Critical to this is the ability for Market Participants to make informed decisions regarding the nature, impact and risks of their interaction with each other. Accordingly, the Code outlines the importance of disclosure and transparency across several Principles; in some places providing high-level guidance around the types of information that should be disclosed (e.g. Principles 1, 8 and 21), whilst in others being more explicit and/or focusing on a specific activity or behaviour (Principles 9, 14, 17 and 18).

Since the launch of the Code in 2017, the GFXC has, at various times, considered the importance of disclosures of transparency within the FX market, and has provided additional guidance and materials to facilitate Market Participants in meeting the disclosure principles set out in the Code. The GFXC has done this through the publication of reports – “The Role of Disclosure and Transparency in the Global FX Market” (February 2019) and “The Role of Disclosure and Transparency on Anonymous E-Trading Platforms” (January 2020) – and, following the 2020/21 3-year review of the Code, the creation of Disclosure Cover Sheets and Algo/TCA Templates.