On 6 August 2018, the Global Foreign Exchange Committee (GFXC) published a first-year report on the FX Global Code (the Code).
Reflecting on the past year, the report notes certain successes including increased awareness and implementation of the Code by virtue of the fact that statements of commitment are being widely used to demonstrate adoption of the Code and as of June 2018, 12 public registers and a global index have been launched.
In terms of looking forward, the report focuses on the GFXC’s objectives and highlights four priorities:
- continue the GFXC working group on disclosures to strengthen the landscape of FX disclosures. This would involve two tracks of work: (i) developing and publishing a list of questions and/or characteristics that a market participant may choose to use in developing or reviewing disclosures; and (ii) discussing any relevant challenges to appropriate transparency in regards to anonymous trading activity and considering any further appropriate work;
- continue the GFXC working group on cover and deal. Further work is to be undertaken to understand the role that disclosures are currently playing in informing end users about how their trade requests are being handled by intermediate providers that may be utilising ‘cover and deal’ arrangements;
- establish a GFXC working group on buy-side outreach. This is intended to build on the initial momentum around buy-side awareness and adoption of the Code; and
- establish a GFXC working group to focus on the embedding and integration of the Code into the fabric of the FX market. To being, the working group will conduct a GFXC survey in late 2018 to determine how market participants are engaging and embedding the Code.