e-Forex July 22
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MARKET COMMENTARY<br />
What steps can be<br />
taken to increase<br />
the awareness and<br />
adoption of the<br />
FX Global Code<br />
amongst<br />
asset managers?<br />
By Eric Huttman, CEO of MillTechFX<br />
Eric Huttman<br />
The BIS Foreign Exchange Working<br />
Group published the FX Global Code<br />
of Conduct on 25 May 2017 with the<br />
aim of providing a common set of<br />
guidelines to promote the integrity<br />
and effective functioning of the<br />
wholesale FX market.<br />
Since its introduction five years ago, a<br />
lot has changed in the FX market. The<br />
way we communicate, collaborate and<br />
the tools and technology we use have<br />
all been transformed.<br />
The code itself has also evolved. The<br />
Global Foreign Exchange Committee<br />
(GFXC) updated 11 of the Code’s 55<br />
principles in <strong>July</strong> 2021 to strengthen<br />
its guidance on anonymous trading,<br />
algorithmic trading, transaction cost<br />
analysis, disclosures and settlement risk.<br />
There is no doubt that the FX Global<br />
Code has improved practices across the<br />
industry while promoting transparency<br />
and spurring debate in key areas such as<br />
transaction cost analysis. But how can<br />
the GFXC build on achievements to date<br />
and maintain this momentum in years to<br />
come?<br />
PROMOTING ADOPTION AMONG<br />
BUY-SIDE<br />
One of the most important features of<br />
the FX Global Code is that is does not<br />
impose any legal or regulatory obligations<br />
on market participants. Instead, it’s a<br />
voluntary code of conduct designed to<br />
set out best practice and processes.<br />
18 JULY 20<strong>22</strong> e-FOREX
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