GXFC Update (September 2023)

5th September 2023

By Lisa Dukes
Member of UK FX Joint Standing Committee (chaired by Bank of England)
UK Private Sector Representative to the Global FX Committee (GFXC

Meeting in Mexico City

Following the recent meeting of the Global FX Committee in Mexico City here is a summary of the key discussions and developments that you may find of interest. Please get in touch if you would like to know more!

Proportionality Self-Assessment Tool

Firstly we delved into the Proportionality Self-Assessment Tool, which I had the pleasure of contributing to within the GFXC Proportionality Working Group – thank you to all of those who helped and fed back your comments!

The tool is a valuable resource designed to streamline the process of determining which of the Code Principles are relevant to us as individual market participants based on how we interact with the FX markets. By responding to a set of specific questions, the tool generates a customised report that pinpoints the most relevant Code Principles – perfect for those looking at the Code for the first time, but also to those looking to support their regular review process.

For more details and access, please visit the FX-hub or the GFXC website directly.

FX Global Code Survey

Next we discussed the survey that the GFXC conducts periodically with the aim of measuring levels of awareness and adoption of the FX Global Code by market participants. The surveys may include topical areas of interest to inform the GFXC’s thinking and identify potential areas of further work.

The GFXC 2023 Survey will launch in September 2023 with a particular emphasis on the effectiveness of the Code as revised in 2021 and will inform the areas of focus for the 2024 review of the Code. A key goal is to ensure survey respondents cover a diverse range of market participants from across the wholesale FX market.

To get involved please get in touch with the GFXC Secretariat via email@globalfxc.org.

Passing the Baton

Another topic of discussion was the change of the GFXC chair. Andréa M. Maechler, member of the Governing Board of the Swiss National Bank (SNB), ceded her role as GFXC Chair after being appointed as the Deputy General Manager of the Bank for International Settlements (BIS). Gerardo García, General Director of Central Bank Operations at the Banco de México, with twenty years of experience at the Banco de México, and an active member of the BIS Markets and Global Financial System Committees, was elected as the new Chair.

FX Considerations for T+1 US Securities Settlement

In addition to discussing the conditions in FX markets, the GFXC discussed the potential implications of shortening the U.S. securities settlement cycle, which will come into effect in the U.S. on 28 May 2024. The SEC’s press release on the Rules to Reduce Risks in Clearance and Settlement can be found here. For its part, the Global Financial Markets Association (GFMA) has recently published a paper entitled “FX considerations for US securities settlement,” which discusses some of the most prominent issues on the matter.

Extra Reading

For those of you who love diving deeper, here are some extra resources that you may find interesting.

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