On 14 February 2019, the Global Foreign Exchange Committee (GFXC) published reports produced by its Disclosures and Cover and Deal working groups and released results from the second annual survey on the FX Global Code.
One report, “The Role of Disclosure and Transparency in the Global FX Market”, describes eight characteristics to help market participants develop and review FX disclosures and lays out the work ahead on understanding the challenges related to disclosures in the context of anonymous platform trading. The other, “The Role of ‘Cover Deal’ Arrangements in the Global FX Market”, describes various aspects of “cover and deal” arrangements and highlights specific, relevant principles within the Global FX Code that relate to such trading practices.
Key findings in the 2018 GFXC survey include:
- 95% of respondents had read part or all of the FX Global Code, and over two-thirds were aware of the updates made to the FX Global Code since its launch in 2017;
- among respondents, adoption of the FX Global Code had significantly increased from 2017 (11%) to 2018 (55%); and
- 80% – 90% of respondents thought the FX Global Code had had a positive effect on their firm and the wider foreign exchange markets.