"The GFXC acknowledges that the changes to the Code will affect certain parts of the market more than others.
With the publication of the updated Code, the GFXC is encouraging market participants to consider renewing their Statements of Commitment, having regard to the nature and relevance of the updates to their FX market activities. A Transaction Cost Analysis Data Template has also been developed to assist users of algorithmic trading services in evaluating the quality of their trade execution.Īlmost 1,100 entities globally have signalled their adherence to the Code's principles by signing a Statement of Commitment.
To encourage providers of algorithmic trading services to share their disclosure information in a standardised format and to assist clients in comparing and understanding the services being offered, an Algo Due Diligence Template is being published by the GFXC. To help address the challenges market participants can face in accessing and evaluating the information that is disclosed to them, standardised Disclosure Cover Sheets for liquidity providers and for FX E-Trading platforms will be made available by the GFXC in August. The updates also ensure that the Code and its principles of good practice remain in step with market developments." 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. Many of the changes are designed to bring about greater transparency in an increasingly complex market. The changes to the Code will ensure that the Code continues to promote the integrity of the market. GFXC Chair Guy Debelle commented that: "The updates proposed by our global working groups received strong support from market participants. Updates have been made to eleven of the Code's fifty-five principles and strengthen the Code's guidance on anonymous trading, algorithmic trading and transaction cost analysis, disclosures and settlement risk.
The GFXC's updates to the FX Global Code follow an extensive process of consultation with the foreign exchange committees around the world and a public request for feedback in April. The Committee is also publishing templates for industry participants to use in improving disclosures and assisting with transaction cost analysis. The GFXC has completed its review of the FX Global Code, updating its principles of good practice in the foreign exchange market in several key areas. Press release GFXC updates FX Global Code, publishes new templates for disclosures and guidance paper on Pre-hedging