FX Global Code
The FX Global Code is a set of principles of good practice for foreign exchange market participants. It aims to promote the integrity and effective functioning of the wholesale foreign exchange market. It was developed by the FX Working Group, a collaborative initiative between central banks and private sector market participants under the auspices of the Markets Committee.
The purpose of the 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.
In order to foster transparency and adherence to the Global Code, a public register has been established where central banks can post their Statements of Commitment to the Code.
Global Foreign Exchange Committee
The Global Foreign Exchange Committee (GFXC) was established in May 2017 as a forum bringing together central banks and private sector participants with the aim to promote a robust, liquid, open, and appropriately transparent FX market in which a diverse set of participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available information and in a manner that conforms to acceptable standards of behaviour.
The objectives of the GFXC are:
- to promote collaboration and communication among the local foreign exchange committees (LFXCs) and non-GFXC jurisdictions with significant FX markets;
- to exchange views on trends and developments in global FX markets, including on the structure and functioning of those markets, drawing on information gathered at the various LFXCs; and
- to promote, maintain and update on a regular basis the FX Global Code (Code) and to consider good practices regarding effective mechanisms to support adherence.
Foreign Exchange Working Group
The Foreign Exchange Working Group (FXWG) was set up in 2015 to establish a single set of global principles of good practice for foreign exchange markets. Operating under the auspices of the Markets Committee, it was headed by Guy Debelle (Reserve Bank of Australia).
The group's objectives were to:
- maintain and enhance principles-based approaches to best practice
- facilitate the establishment of a single global code of conduct containing standards and principles to be adopted across jurisdictions globally
- develop proposals to promote and incentivise adherence to the Code
The group's membership covered major financial centres in both advanced and emerging market economies, and its work was supported by a private sector Market Participants Group (MPG). The work was divided into two streams: one focused on drafting the Code and the other on developing a proposal on adherence.
A global code of conduct for wholesale foreign exchange markets was released in London on 25 May 2017. The publication is the culmination of a two-year effort by members of the FXWG, in close cooperation with currency market participants. The Code is being maintained by the Global Foreign Exchange Committee, a global association of FX committees.
The FXWG also produced a Report on Adherence setting out a framework to promote awareness and incentivise adherence to the Code's standards.
The private sector Market Participants Group (MPG) drew on participants from the sell side and buy side of the market as well as FX infrastructure providers. The MPG was chaired by David Puth, Chief Executive Officer of CLS.
The group's role was to:
- provide insight, expertise and effort to help support the development of and effective adherence to a single global code of best practices for the foreign exchange market. This included providing input on content for the Code, formulating frameworks and occasionally preparing initial drafts on topics not adequately covered in existing codes.
- serve as a centralised, private sector coordinating mechanism on FX best practices work for FXCs and other regional representatives. MPG members coordinated with their respective FXCs and regional counterparts, as appropriate, and channelled their full individual and institutional expertise and experience into the work of the MPG.
MPG members
| Chris Allen, Barclays |
| Hiroaki Aoyama, Mizuho Bank |
| Marshall Bailey, ACI Financial Markets Association International |
| Cédric Beaurain, Société Générale |
| James Bindler, Citi |
| Adrian Boehler, BNP Paribas |
| Justin Chan, The Hongkong and Shanghai Banking Corporation Limited |
| Chris Concannon, BATS Global Markets |
| Cui Qi, China Foreign Exchange Trade System |
| Patrick Fleur, PGGM |
| Alex Gerko, XTX Markets |
| Grady Stephen, LGIM Legal & General Investment Management Ltd |
| James Harvey, Rolls-Royce |
| Darryl Hooker, EBS Broker Tec |
| Akira Hoshino, The Bank of Tokyo-Mitsubishi UFJ Ltd |
| Hyun Soo Jo, Industrial Bank of Korea |
| Tony Kearney, Moore Capital |
| Hugh Killen, Westpac Banking Corporation |
| Han Young Ko, Seoul Money Brokerage Services, Inc |
| Claas Carsten Kohl, Airbus Group |
| Geoff Kot, Standard Chartered Bank |
| Chee Kin Lam, DBS Group Holdings and DBS Bank |
| Russell Lascala, Deutsche Bank |
| Ernst Lienhard, Swiss Re |
| Federica Mazzucato, UBS Investment Bank |
| Joseph A Molluso, Virtu Financial |
| Ed Monaghan, Royal Bank of Canada |
| Stina Norrhede Ekberg, SEB |
| Mike O'Brien, Eaton Vance |
| Shantanu S Pradhan, State Bank of India |
| Ankur Pruthi, Norges Bank Investment Management |
| David W Puth, CLS Bank International |
| Troy Rohrbaugh, JP Morgan |
| Gilberto Romero Galindo, Banco Ve por Más |
| Marcus Samuelsson, Ericsson |
| Lisa Scott Smith, Millennium Global |
| James Sinclair, MarketFactory, Inc |
| Marco Antonio Sudano, Banco Itaú BBA |
| Sun Wei, China CITIC Bank |
| Robert Tull, Fifth Third Bank |
| T Venkatesan, Tata Consultancy Services |
| Christopher John Vogel, BlackRock |
| Phil Weisberg, Thomson Reuters |
| David Woolcock, ACI Financial Markets Association InternationalLee Sanders, Axa Investment Managers |
- Reserve Bank of Australia
- Central Bank of Brazil
- Bank of Canada
- State Administration of Foreign Exchange (China)
- Bank of France
- European Central Bank
- Hong Kong Monetary Authority
- Reserve Bank of India
- Bank of Japan
- Bank of Korea
- Bank of Mexico
- Monetary Authority of Singapore
- Sveriges Riksbank
- Swiss National Bank
- Bank of England
- Federal Reserve Bank of New York