Of Relevance to: FX Market Participants
This new Code is relevant to all FX market participants, whether buy-side or sell-side, regardless of ‘product’, including E-Trading Platforms (page 4 provides a guide to the types of entities to which the Code will be relevant – ranging from the treasury operations of family offices to hedge funds and “financial institutions”).
Promotion and maintenance of the Code is one of the objectives of the Global Foreign Exchange Committee (“GFXC”) which was established this May. The members of the GFXC consist of various global Foreign Exchange Committees; the UK is represented by the London Foreign Exchange Joint Standing Committee which is chaired and administered by the Bank of England.
Areas covered by the Code include ‘Governance’, ‘Execution’ and ‘Risk Management and Compliance’.
Annex 1 provides examples of good and bad practice.
Those entities wishing to promote their adherence to the Code are provided with a template ‘Statement of Commitment’ in Annex 3.
The FCA has made a positive statement on the publication of the FX Global Code.