On August 6, the Global Foreign Exchange Committee (GFXC) published a paper looking back over the first year of the FX Global Code (Code), as well as an updated version of the Code.

The paper highlights the GFXC’s priorities, including:

• continuing the GFXC working group on disclosures to strengthen the landscape of FX disclosures;
• continuing the GFXC working group on “cover and deal” arrangements;
• establishing a GFXC working group on buy-side outreach; and
• establishing a GFXC working group to focus on the embedding and integration of the Code into the fabric of the FX market.

A related press release explains that the new version of the Code adds an illustrative example to Principle 11, which concerns pre-hedging. The example highlights negative behavior, in contrast to the two existing examples of positive behavior.

The GFXC was established in May 2017 as a forum to bring together central banks and private sector participants, with the aim of promoting a robust, liquid, open and transparent FX market. The code, which was originally published in May 2017, comprises a set of global principles of good practice in the FX market (for more information, see the Corporate & Financial Weekly Digest edition of May 26, 2017).

The paper is available here.

The new version of the Code is available here and the related press release, here.