FXPA Cautions Over Prescriptive Nature of Proposed Amendments to FX Global Code
WASHINGTON, DC, October 28, 2024 – The Foreign Exchange Professionals Association (FXPA) cautions that proposed amendments to the FX Global Code and Disclosure Cover Sheets may be overly prescriptive.
In the feedback provided to the Global Foreign Exchange Committee (GFXC), FXPA reaffirms its commitment to the Code, which aims to foster a robust, fair, liquid, open, and transparent foreign exchange market, and commends the GFXC’s efforts to enhance transparency and stability within the FX market through these updates.
“We believe that aligning with the Code’s principles-based approach is crucial for benefiting all market participants,” FXPA states in comments submitted to GFXC today.
However, the FXPA cautions that an overly rigid framework could hinder widespread adoption of the Code, as it might not provide the necessary flexibility to accommodate varying jurisdictional regulatory requirements and promote responsible innovation and efficiency.
To ensure the amendments are effective, the FXPA suggests that they be accompanied by enhanced explanations, guidance and, where appropriate, cost-benefit analyses. FXPA believes this is essential for evaluating the potential market impacts of the proposed changes.
FXPA also notes that the public consultation period was notably short, making it challenging for market participants – who often operate across multiple jurisdictions – to adequately assess the proposed amendments, and urges GFXC to allow sufficient time and engagement for validating the feasibility and desirability of these changes with the broader market.
Furthermore, the FXPA encourages the GFXC to ensure that all market participants, including trading platforms and infrastructure providers, are represented throughout the amendment process. “It is vital to engage end-users and buy-side representatives to foster a constructive dialogue that encourages their commitment to the Code and to ensure that any adopted amendments deliver meaningful benefits,” FXPA states.
The FXPA’s membership, including its buy-side and platforms working groups, stands ready to collaborate with the GFXC to ensure the Code remains fit for purpose and enhances the integrity of the FX market.
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About FXPA: The Foreign Exchange Professionals Association (FXPA) is dedicated to promoting a fair and efficient foreign exchange market through collaboration among market participants, regulators, and industry stakeholders.
Media contact:
Julie Ros, Strategic Advisor jros@fxpa.org
FXPA Publishes White Paper Promoting Fair & Orderly FX Derivative Markets
WASHINGTON, DC, September 12, 2024 – The Foreign Exchange Professionals Association (FXPA) has published a white paper entitled Regulated FX Derivatives Trading Venues: Promoting Fair and Orderly Markets. The paper is the outcome of several months’ work by FXPA’s Trading Platforms Working Group and explores the potential risks posed by the current, uneven playing field that exists between regulated and unregulated trading venues operating in over-the-counter FX derivatives markets.
The paper focuses on the varying structures of trading venues, the potential impacts on market integrity, and the benefits of regulatory oversight for these venues. “While unregulated FX derivatives trading venues may, in some cases, offer higher leverage, lower deposit requirements to trade, lower fees for customers and less onerous onboarding requirements, when compared to regulated FX derivatives trading venues, those benefits may come at the expense of reduced customer protections resulting from lack of comprehensive regulatory oversight,” the report states.
“The presence of unregulated FX derivatives trading venues also introduces the possibility of regulatory arbitrage for FX markets. These dynamics raise concerns about fairness and market integrity around the operation of unregulated FX derivatives trading venues. Market participants should be aware of the regulatory status (or lack thereof) and attendant protections and risks of the platforms on which they decide to trade. The presence or absence of regulatory oversight can impact a range of issues, including the role of affiliated market makers, permitted trading practices, market surveillance, and overall market integrity,” the paper further states.
With the publication of this paper, FXPA aims to provide regulators, policymakers, and market participants with helpful insights into the industry, and promote informed decision-making.
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Since 2014, the Foreign Exchange Professionals Association (FXPA) has been representing the collective interests of the institutional FX market to advance a sound, liquid, transparent, and competitive global currency market to policymakers and the marketplace through education, research, and advocacy.
Celebrating its 10th Anniversary, FXPA Ushers in Officers, Directors
WASHINGTON, DC, February 26, 2024 – The Foreign Exchange Professionals Association (FXPA) elected a new slate of Officers and Board of Directors members at its annual meeting on February 20, 2024, marking its 10th anniversary as an organization.
Encompassing buy side, sell side, exchanges, trading platforms, and technology providers, the elections showcase the key tenets of the association, which are to represent the collective interests of professional foreign exchange market participants to advance a sound, liquid, transparent and competitive global currency market to policy makers and the marketplace through education, research and advocacy.
FXPA’s new Chair is Joe Hoffman, CEO of Mesirow Currency Management at Mesirow Financial in Seattle; Vice Chair is Dale Haver, Senior Managing Director, Global Head of FX Sales at State Street Global Markets in Boston; Treasurer is Jeff Roberts, Director, EBS Market Product at CME Group in London; and Lauren Rosborough Watt, Economics & Investment Manager at CalPERS in Sacremento, continues as Secretary. The four officers form FXPA’s Executive Committee, which sets the agenda for the upcoming year.
“The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of the FXPA,” affirms Joe Hoffman, CEO of Mesirow Currency Management. “Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”
During 2023, FXPA launched three new working groups. The T+1 Settlement WG, working together with the Buy Side WG, produced a guidance paper for the buy side on preparations for the transition in May 2024. The Buy Side WG is also focussed on issues pertaining to transparency. The Trading Platforms WG is developing a white paper that focuses on FX Global Code compliance on trading venues, among other topics. Additional working groups include the Digital Assets WG and Off-Market Pricing WG.
FXPA also elected a slate of candidates to the Board, which is now comprised of:
Martin Knudsen, Senior Product Manager, FX Electronic Trading, Bloomberg
Lauren Rosborough Watt, Economics & Investment Manager, CalPERS
Scot Halvorsen, Assistant General Counsel, Cboe Global Markets
Jeff Roberts, Director, EBS Market Product, CME Group
Taylor Haberstock, Associate Trader, Global Income, Eaton Vance Management
Patrick Basilice, Chief Compliance Officer, Euronext US Inc, Euronext
Cathrine Poulton, Managing Director, Global Buyside Head of GlobalLink FX Product Sales, GlobalLink
Richard Turner, Senior Trader, Insight Investment
Joseph Hoffman, CEO, Mesirow Currency Management, Mesirow Financial
Christopher Matsko, Head of FX Trading Services, Portware
Dale Haver, Senior Managing Director, State Street Global Markets
The FXPA is a unique industry body that represents a diverse cross-section of the FX market to advance its mission to collectively represent the interests of professional FX industry participants. Since 2014, the FXPA has established itself as a respected industry thought-leader and resource for the industry, media, and global policymakers.
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The Foreign Exchange Professionals Association (“FXPA”) is a Washington-based organization that represents the collective interests of professional foreign exchange market participants. The group engages with key regulators and policymakers through education, research, and advocacy, with the goal of advancing a sound, liquid, transparent and competitive global currency market. See more at www.fxpa.org