GFXC meets via videoconference to discuss progress on the FX Global Code review, FX benchmarks, and announces new Co-Vice Chair
10 December 2020
The Global Foreign Exchange Committee (GFXC) met to discuss the progress being made in its review of the FX Global Code. The Committee is on track to finalise the review in mid-2021.
Ahead of its latest meeting, GFXC members received papers prepared by the working groups for each of the focus areas of the review: buy-side outreach, disclosures, anonymous trading, algorithmic trading, settlement risk, and execution principles. “The review of the Code is progressing well. One major theme across all areas of the review is the importance of clear and accessible disclosures. There is widespread support for standardised disclosures cover sheets. They have the potential to move the FX market forward in a material way, promoting greater transparency and supporting Market Participants in making informed choices.” said GFXC Chair Guy Debelle.
The GFXC discussed the feedback on these papers from the local foreign exchange committees (FXCs). The papers and the proposed changes to the Code will be revised on the back of that feedback and then recirculated to the FXCs for another round of detailed feedback in March. A public ‘Request for Feedback’ on some of the proposals coming out of the review will be launched in April. The final proposals will be submitted for approval by the GFXC at their June 2021 meeting.
The GFXC announced that Richard de Roos, Group Head of Foreign Exchange for Standard Bank Group, has been selected as Co-Vice Chair for a two-year team.
“The GFXC is committed to its outreach and adoption of the Code to accommodate all stakeholders and jurisdictions in the foreign exchange markets. I am honoured by this appointment and excited by the opportunity it provides to emerging markets across the globe as we continue to ensure we are aligned with best practice while providing an important voice to the GFXC on our particular markets” Mr de Roos said.
Mr de Roos will succeed outgoing Co-Vice Chair, Akira Hoshino (Head of FX at Citi, Tokyo). “Akira has brought his wealth of experience from his long and illustrious career in the market to make a significant contribution as Co-Vice-Chair of the GFXC. He is a great sounding board for the work the GFXC is doing to support the effective functioning of the market.” said Dr Debelle.
The GFXC also welcomed the Indonesian Foreign Exchange Market Committee and Israel as associate members.
The GFXC continued its discussions on the WM/Reuters 4pm fix, with Refinitiv Benchmark Services Limited presenting data on trading patterns around the fix as well as updating members on its current focus areas for administering these benchmarks.
Summaries prepared by the GFXC members on broader trading conditions in foreign exchange markets are also being published today. The minutes of the meeting will be published in January.
For additional details on the GFXC and the FX Global Code, visit the GFXC website: www.globalfxc.org.
Reserve Bank of Australia