FX Global Code
The FX Global Codea> 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 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 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 and FX infrastructure providers across these regions.
The work to develop the 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 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 Global Code marked the completion of the FXWG's mandate.
Upon launch of the Global Code, the Global Foreign Exchange Committee 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.
Triennal Review – July 2021
On July 15th 2021, 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. 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. 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.
Within the 3-year review, it is important to acknowledge the creation of Disclosure Cover Sheets and Algo/TCA Templates, 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 July 2021.