FX GLOBAL CODE

The FX Global Code is a set of global principles of good practice in the foreign exchange market, developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. It was developed by a partnership between central banks and market participants from 16 jurisdictions around the globe.

The purpose of the FX Global Code is to promote a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of Market Participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour.

The FX Global Code does not impose legal or regulatory obligations on Market Participants, nor does it substitute for regulation, but rather it is intended to serve as a supplement to any and all local laws, rules and regulations by identifying global good practices and processes.

HISTORY OF THE FX GLOBAL CODE

The establishment of the FX Global Code was facilitated by the Foreign Exchange Working Group (FXWG), which operated under the auspices of the BIS Markets Committee and consisted of central banks from 16 jurisdictions around the globe. The work was supported by a Market Participants Group (MPG), which drew from market participants spanning the sell side, buy side, infrastructure providers and trade associations (including ACI FMA) across these regions.

The work to develop the FX Global Code spanned roughly two years with some initial content on ethics, execution, information sharing and confirmation and settlement principles published in May 2016. The complete FX Global Code was published in May 2017 featuring new sections on governance, risk management and compliance, and additional material on topics such as electronic trading and prime brokerage. The publication of the FX Global Code marked the completion of the FXWG's mandate.

Upon launch of the FX Global Code, the Global Foreign Exchange Committee (GFXC) has been tasked with its ongoing maintenance, continuing the collaboration between central banks and the private sector on developing principles for good practice in the FX Market.

REVIEW – DECEMBER 2024

After the initial review in July 2021, the GFXC has completed a new review of the FX Global Code in December 2024, updating the recommended good practices for the FX Market in key areas. The GFXC's updates to the FX Global Code usually follow various processes of consultation with the Local FX Committees around the world, Market Participants through Surveys and other means.

In this occasion, updates have been made to five of the Code's fifty-five principles with a view to strengthen the Code's guidance on FX Settlement Risk, as well as to increase transparency around certain types of FX transactions and the use of client-generated data on E-Trading Platforms.

Within this review, it is also important to acknowledge the enhancement of the Disclosure Cover Sheets for Liquidity Providers and E-Trading Platforms, in line with the importance of Disclosures and Transparency in the FX Market.

GLOBAL INDEX OF PUBLIC REGISTERS

The GFXC has established a Global Index of Public Registers ("Global Index"). The Global Index acts as a central location that links the various Participating Public Registers, providing a more comprehensive view of market participants' commitment to good practices.

Access the Global Index here and discover who has committed to the FX Global Code and loaded the statement to one of the available Public Registers.

Download the FX Global Code December 2024.

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