The Global Foreign Exchange Committee (GFXC) has released further detail from its 22-23 May meeting in Tokyo, Japan. During the meeting the committee discussed its mandate to consider the case for a comprehensive review of the FX Global Code at least every three years.
The GFXC announced that Neill Penney, managing director and co-head of trading at Refinitiv, has been selected as Co-Vice Chair for a two-year term.
It is an honour to join the GFXC’s leadership team, and I’d like to thank the members of the committee for their support,” Mr. Penney said. “There are a number of important efforts underway globally and I am pleased to co-lead the private sector’s contribution to the ongoing work of the Committee.
The GFXC notified that it would seek feedback through multiple channels, including the forthcoming GFXC Survey, local FX Committees, the BIS Triennial Survey of foreign exchange and OTC derivatives trading, and a targeted outreach program. Members agreed that the review would likely focus on areas most impacted by the evolution of e-trading to maintain the relevance of the Code’s existing principles.
The FX Global Code has been in place for a few years now and remains fit for purpose. But it is appropriate to review it to reflect the continuously evolving market structure and dynamics,” said Guy Debelle, Chair of the GFXC. “Feedback from all market participants who use and adhere to the Code will be important to determining the proper scope for this first review, which we’d expect to be focused on a few key areas. Ongoing engagement around the Code and its role in the foreign exchange market is critical to its success.
Finally, the GFXC released materials from its last meeting, including a new illustrative example on “cover and deal” trading activity and a presentation on “flash crash events” in foreign exchange markets.
The Tokyo meeting showed the integral role the GFXC plays in promoting a robust, liquid, open and transparent FX market,” said Akira Hoshino, Co-Vice Chair of the GFXC and managing director and head of FX and local markets at Citi, Tokyo. “Our discussion around flash events provided a clear example of how the GFXC serves as a forum to consider timely issues and whether they might have implications in the foreign exchange market among a broad range of official and private sector market participants.
The GFXC’s next meeting will take place in December 2019 in Sydney, Australia.