On 8 April 2021, the Global Foreign Exchange Committee (GFXC) announced that as its review of the FX Global Code was nearing completion it was issuing a request for feedback on proposed changes to the Code and draft disclosure templates. The GFXC’s request for feedback covers proposals for updating the Code’s guidance in the following areas: anonymous trading, algorithmic trading and transaction cost analysis, disclosures and settlement risk. Changes to ten of the Code’s fifty-five principles are proposed. The GFXC is also seeking feedback on disclosure cover sheets it has developed for both liquidity providers and FX venues. These are intended to help market participants to navigate what can be lengthy and complex disclosure documents.
The deadline for comments on the GFXC’s proposals is 7 May 2021. The proposals will be finalised for approval by the GFXC at its June 2021 meeting. An updated version of the Code will be published shortly thereafter.
The GFXC is also developing additional guidance material on the practices of ‘last look’ and ‘prehedging’. Feedback on this material will be sought from the broader industry in May, in addition to the local foreign exchange committees.