GFXC updates 20% of FX Global Code’s principles and announces templates, guidance

Rick Steves

Eleven of the Code’s fifty-five principles were reviewed. The committee strengthened the Code’s guidance on anonymous trading, algorithmic trading and transaction cost analysis, disclosures and settlement risk.

The Global Foreign Exchange Committee (GFXC) has announced it has updated the FX Global Code, published new templates for disclosures, and a guidance paper on pre-hedging.

Following an extensive review of the FX Global Code, the committee has updated the principles of good practice in FX in several key areas.

The GFXC has updated eleven of the Code’s fifty-five principles and strengthened the Code’s guidance on anonymous trading, algorithmic trading and transaction cost analysis, disclosures and settlement risk.

GFXC Chair Guy Debelle said: “The updates proposed by our global working groups received strong support from market participants. The changes to the Code will ensure that the Code continues to promote the integrity of the market. Many of the changes are designed to bring about greater transparency in an increasingly complex market.

“These changes are supported by the templates for disclosure and data provision that we have developed for market participants, to provide them a standardised reference point. The updates also ensure that the Code and its principles of good practice remain in step with market developments.”

To help address the challenges market participants can face in accessing and evaluating the information that is disclosed to them,

The GFXC will release standardised Disclosure Cover Sheets for liquidity providers and for FX E-Trading platforms in August 2021.

The committee will also publish a Algo Due Diligence Template to encourage providers of algorithmic trading services to share their disclosure information in a standardised format. This will also assist clients in comparing and understanding the services being offered.

Algorithmic trading services will be provided with a Transaction Cost Analysis Data Template in order to help users in evaluating the quality of their trade execution.

The FX Global Code has been adhered by nearly 1,100 entities, who signed a Statement of Commitment to the code’s principles. The update is also meant to encourage market participants to consider renewing their Statements of Commitment.

GFXC co-Vice Chair Richard de Roos (Standard Bank), commented: “The GFXC acknowledges that the changes to the Code will affect certain parts of the market more than others. For those most affected by the changes, we would anticipate a period of up to 12 months for practices to be brought into alignment with the updated principles.

In addition, the committee intends to provide further clarity on the appropriate use of pre-hedging. THe GFXC will be publishing a guidance paper that discusses the circumstances in which pre-hedging could be used in the FX market and the controls and disclosures that could help align this activity with the Code. A guidance paper on Last Look is expected to be released in August.

GFXC co-Vice Chair Neill Penney (London Stock Exchange Group), said: “These guidance papers have benefited from wide-ranging input from market participants, including through a public request for feedback. The papers are meant to be read alongside the Code. They will assist market participants from both the buy- and sell-side in applying the principles of the Code to these types of activities.”

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<