GFXC Updates on Adherence, Settlement and Lines Up Next Review

The Global Foreign Exchange Committee is set to launch its latest survey in August to measure the effectiveness of the existing principles of the FX Global Code, and to determine the scope of its next triennial review, due in 2027.

The body also provided an update on its work on adherence, settlement as well as its partner network during a two-day meeting where Bernard Wee, group head of markets and investment at the Monetary Authority of Singapore was elected chair, taking over from Gerardo García, the general director of central banking operations at the Bank of Mexico.

The outgoing chair told the meeting that the GFXC Global Index of Public Registers now includes 1,549 signatures. Participants discussed the work of the Settlement Risk Working Group and the ongoing work to collect FX settlement risk data as the United Kingdom, the European Union, Switzerland and Liechtenstein, Norway, and Iceland prepare to transition to T+1 settlement in securities markets in October next year.

The GFXC’s recently-established Technology and Innovation Working Group gave a run through of its planned work and structure, including how it plans to evaluate the impact of new technologies on FX market dynamics. The FX Data Working Group, meanwhile, gave an update on its initiatives to enhance the availability and transparency of FX market data and to promote the usage of Disclosure Cover Sheets for liquidity providers and platforms.

Representatives from the Global Financial Markets Association, Financial Markets Standards Board and ACI FMA shared takeaways from recent research and joined panel discussions as part of the GFXC’s strategic initiative to foster engagement with relevant organisations as it seeks to strengthen the market-wide adoption of the Code.

Panel discussions also featured the importance of governance in fast-paced markets with rapidly-changing technologies and examples of how proportionality works in practice. Geopolitical dynamics, U.S. trade policy, and a discussion on how developments in emerging markets economies might affect FX market structure, liquidity and fragmentation were also on the agenda, together with a panel on how emerging markets currencies are integrating into global FX markets.