FX Global code register

The foreign exchange (FX) market is the world’s biggest financial market and serves as an observation point for global trade and economic activity. The FX Global Code (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 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.

More information about the Global Code is available at the Global Foreign Exchange Committee (GFXC) website: www.globalfxc.org

Download a copy of the FX Global Code: www.globalfxc.org/docs/fx_global.pdf

A well-functioning FX market is in the interest of all market participants and the broader community. The guidance provided through the Global Code applies to the everyday conduct of business in the foreign exchange market and will support the integrity and effectiveness of the market. The Global Code sets collective industry values for the market and reduces areas of potential uncertainty about market practice through many useful practical examples.

Widespread adoption of the FX Global Code (Global Code) across the diverse and broad spectrum of market participants will support the integrity and effective functioning of the foreign exchange market. Given the Global Code's voluntary nature it will only be effective in strengthening conduct standards if market participants embrace, adopt and adhere to it. A standardised "Statement of Commitment" is available by which market participants can demonstrate their recognition of, and commitment to adopting the good practices set forth in the FX Global Code.

The GFXC is supporting the development of public registers for market participants to post their Statement of Commitments. The public register, provided by the Australian Financial Markets Association and endorsed by ACI-Australia, facilitates market participants declaring their recognition of, and commitment to adopting the good practices set out in the Global Code. It also assists interested parties to identify market participants that have committed to the Code.

More information about Statements of Commitment and Public Registers is available at the Global Foreign Exchange Committee website: www.globalfxc.org

Download a standardised copy of the Statement of Commitment:
https://www.globalfxc.org/docs/statement_of_commitment.pdf

The FX Market features a diverse set of participants who engage in the market in different ways and across various FX products. The Global Code is written with this diversity in mind and is expected to apply to all FX Market Participants that engage in the FX Market, including sell-side and buy-side entities, non-bank liquidity providers, operators of E-Trading Platforms, and other entities providing brokerage, execution, and settlement services. While there can be no universal “one size fits all” approach, given the diversity of the market, the Global Code is intended to establish a common set of guidelines for responsible participation in the market.

For the purposes of this register, a “Market Participant” is a person or organisation (regardless of legal form) that:
 

1. is active in FX Markets as a regular part of its business and is engaged in the activity of the purchase or sale of one currency against another, or in transactions designed to result in gains or losses based upon the change in one or more FX rates, such as derivatives, whether deliverable or non-deliverable, either directly or indirectly through other market participants; or
2. operates a facility, system, platform, or organisation through which participants have the ability to execute the type of transactions described in (1); or
3. provides FX benchmark execution services; and
4. is not considered a retail market participant in the relevant jurisdiction(s).

The term includes any personnel who conduct the foregoing on behalf of a Market Participant.

As a guide, the following types of persons or organisations would generally be expected to engage in FX Market activities as Market Participants, as described in 1 – 4 above:

• Affirmation and/or settlement platform
• Asset manager
• Bank
• Broker or investment adviser
• Central bank
• Corporate treasury department
• E-trading platform
• Government agency
• Hedge fund
• Infrastructure or technology provider
• Insurance company
• Non-bank liquidity provider
• Other
• Pension fund
• Quasi-sovereign or supranational institution
• Sovereign wealth fund

Any entity classified as an FX Market Participant in the relevant jurisdiction(s).

The universe of Market Participants is diverse in the type and level of engagement in the FX Market. The Global Code is expected to apply to all of these Market Participants, but the details of how it may apply can depend on their underlying activities. In practice, the steps that different Market Participants take to align their activities with the principles of the Global Code will reflect the size and complexity of the Market Participant’s FX Market activities, and the nature of the Market Participant’s engagement in the FX Market, and will take account of the law of their jurisdiction. Ultimately, the decision of what steps should be undertaken, and in what manner, resides with each Market Participant, reflecting an appropriate internal assessment.

To submit a Statement of Commitment to this Register, institutions need to download two documents:

1. Registration Form
   
   An editable PDF version of the Registration form is available here – AFMA Statement of Commitment Registration Form
   
   When completing the Registration Form, market participants should:
    
   • Identify by name the institution covered by the Statement of Commitment. If the commitment covers several corporate entities with a group these should be separately named.
     • Provide a legal entity identifier (LEI). It is not essential to provide an LEI but providing one will give greater certainty to users of the Register in identifying an institution on the Register. An LEI should be provided for each named institution.
   • Identify what type of market participant the institution is. A list of market participant types can be found on the Registration form
   • Identify the geographical / jurisdictional scope covered by the Statement of Commitment. By default, all submitted Statements of Commitment will be assumed to have global coverage for registered institutions unless they are qualified by a geographical / jurisdictional limitation – this may be expressed in a way which is appropriate to the institution’s operations, such as by reference to global coverage, region or certain jurisdictions.
2. The Statement of Commitment.
   
   An editable PDF version of the standardised Statement of Commitment is available here: https://www.globalfxc.org/docs/statement_of_commitment.pdf
   
   Institutions submitting a Statement of Commitment should note that:
    
   • The Global Foreign Exchange Committee will not recognise non-standardised Statements of Commitment.
   • The standardised Statement of Commitment requires the institution’s name and the date of signing.
   • The Statement of Commitment should be signed by a person with the appropriate authority to do so on behalf of the institution.

It is important for institutions to ensure that the information they have provided in their submission is correct. AFMA does not take any responsibility for verifying the information provided.

AFMA does not monitor for changes in the status of registered institutions. It is the responsibility of registered institutions to contact AFMA if there is any change in the information provided by them. In addition, it is the responsibility of registered institutions to inform AFMA if their circumstances change or if they wish their Statement of Commitment to be removed from the Register.

Completed Registration Forms and Statements of Commitment can be submitted to AFMA at [email protected]

How frequently should a Market Participant review/renew their Statement?

The nature of an institution's business may change over time. Institutions that register a Statement of Commitment should consider what steps they will take to review their activities for alignment with the FX Global Code's principles. The steps taken should reflect the size and complexity of the institution's FX Market activities, and the nature of its engagement in the FX Market. Whereas some institutions may consider setting a regular schedule for review, others may vary their approach based on how their business changes over time.

It is anticipated that the FX Global Code will be updated from time to time to reflect emerging issues, changes in the FX Market, and feedback from market participants and others. Upon publication of future updates to the FX Global Code, institutions that have committed should consider renewing their Statement having regard to the nature of those updates, as well as the size and complexity of their FX Market activities, and the nature of their engagement in the FX Market. Upon renewing a Statement of Commitment a commitment to an earlier version of the FX Global Code will be removed from the Register

Costs

AFMA supports the global principles of good practice in the FX Global Code. AFMA Members and non-members are invited to submit Statements of Commitment to AFMA’s public register without any costs to their organisation.