The Global Foreign Exchange Committee (GFXC or Committee) held a two-day virtual meeting on 5–6 December, which was hosted by the Bank of Mexico. Gerardo García (GFXC Chair) provided an update on the continued growth of the entries in the GFXC Global Index of Public Registers, which currently stands at over 1,300 Statements of Commitment¹.

The GFXC considered the final version of the amendments to the FX Global Code (the Code). The FX Settlement Risk and FX Data Working Groups presented their final proposals, and provided an overview of how the proposals had been modified to address comments received from Local FX Committees around the world and the Request for Feedback, which took place in October. The GFXC membership expressed strong support for the proposed amendments, which aim to strengthen the Code’s guidance on FX settlement risk and to increase transparency around certain types of FX transactions and the use of client-generated data on electronic trading platforms.

The GFXC Working Groups’ plans for 2025 were presented, which will include an analysis of the FX settlement risk data from the 2025 BIS Triennial Central Bank Survey. The Committee received an overview of the potential logistics for Market Participants to renew the Statement of Commitment (SoC) following the publication of the updated version of the Code. There were also two informative external sessions: a review of the International Swaps and Derivatives Association (ISDA) FX and Currency Options Definitions, and an overview of the International Organization of Securities Commission (IOSCO) Pre-hedging Consultation Report.

The Motivation for Adherence Working Group provided an update on the GFXC efforts to increase the visibility and adoption of the Code through social media outlet and conferences, and also outlined the next steps to promote a deeper understanding of the benefits of Code adherence.

The meeting proceeded with several Local FX Committees providing updates on market conditions in both advanced and emerging FX markets, as well as their outreach efforts to promote adherence to the Code.

The GFXC Chair outlined the next steps, including the objectives of the Working Groups for 2025. Importantly, the updated version of the Code will be finalised in December and published in early January 2025. It will be accompanied by a paper summarising the outcomes of the review and will include the responses received by the GFXC to the Request for Feedback on the proposals to amend the Code.

The Chair praised this year’s work, and emphasised the challenges ahead, particularly in terms of increasing buy-side adherence to the Code. Indeed, he mentioned: “this is where we need to work the most, to have more institutions come closer to the GFXC and to adopt the Code…”

The next GFXC meeting will be held in-person on 3-4 July 2025 in Singapore.

The minutes of this meeting will be published in January 2025.

For additional details on the GFXC and the FX Global Code, please visit the GFXC website.

Source: GFXC