FXPA Releases Industry Guidance on the Role and Interpretation of FX Spread Grids
WASHINGTON, DC, June 29, 2026 – The Foreign Exchange Professionals Association (FXPA) today published new industry guidance designed to promote a common understanding of the role and interpretation of spread grids in foreign exchange markets. The paper, FXPA Guidance: The Role and Interpretation of FX Spread Grids, was developed through discussions within FXPA’s Buy Side Working Group and reflects perspectives from market participants across the global FX ecosystem.
Spread grids have long been used by market participants as a reference tool for understanding expected trading costs across currency pairs, tenors, notional sizes and market environments. However, differing interpretations of their purpose and application can sometimes lead to misaligned expectations between liquidity providers and market participants.
The guidance clarifies that spread grids are intended to provide indicative, contextual information regarding expected execution costs under representative market conditions. They are not firm quotes, contractual commitments, service-level agreements, or substitutes for executable price discovery and transaction cost analysis.
In his capacity as Chair of FXPA’s Buy Side Working Group, Richard Turner, Senior Trader at Insight Investment, noted: “Spread grids have been a longstanding feature of the FX market, providing valuable context around expected trading costs and liquidity conditions. However, as execution workflows become increasingly data-driven and sophisticated, it is important that market participants understand both what spread grids can tell us – and what they cannot. This guidance is intended to promote a common understanding of their role as reference tools, helping support more informed execution decisions, more constructive dialogue between counterparties, and stronger execution-quality assessment across the market.”
The paper outlines the appropriate use of spread grids from both liquidity provider and buy side perspectives and highlights common misconceptions regarding their application. It also emphasizes the growing importance of data-driven execution assessment through transaction cost analysis, RFQ histories, and observed execution data.
Key themes addressed in the guidance include:
- The intended purpose of spread grids as contextual reference tools
- Appropriate use cases for liquidity providers and buy side firms
- Common misconceptions regarding spread-grid interpretation
- The impact of market conditions, volatility and liquidity on execution outcomes
- The importance of complementing spread grids with transaction cost analysis and execution data
- Opportunities for greater industry alignment and communication regarding execution expectations
FXPA believes that greater clarity regarding the role of spread grids can help reduce friction in pricing discussions, improve buy side and sell side alignment, and support stronger execution-quality evaluation frameworks across the FX market.
The full guidance paper is available at https://fxpa.org/wp-content/uploads/2026/06/Spread-Grids-Guidance.pdf
About FXPA
The Foreign Exchange Professionals Association (FXPA) is a Washington-based organization that represents the collective interests of institutional FX market participants. Through education, research, and advocacy, FXPA works to promote a sound, liquid, transparent, and competitive global currency market. Learn more at www.fxpa.org.
Media Contact:
Julie Ros
jros@fxpa.org
RBC Capital Markets Joins FXPA as Supporting Member
The Foreign Exchange Professionals Association (FXPA) is pleased to welcome RBC Capital Markets as a Supporting Member. A leading global investment bank and part of Royal Bank of Canada, RBC Capital Markets is recognized for its commitment to innovation, risk management, and delivering value to clients in the FX market and beyond.
“RBC Capital Markets’ deep expertise and global reach make it a significant addition to FXPA,” says FXPA Chair, Joseph Hoffman, CEO of Mesirow Currency Management at Mesirow Financial. “RBC’s involvement further enriches the collective knowledge and expertise within our organization. Their perspective will be invaluable as we address critical industry topics and engage with policymakers.”
Since its founding in 2014, FXPA has represented the interests of the institutional FX market, advancing its mission through education, research, and advocacy. The addition of RBC Capital Markets highlights FXPA’s commitment to bringing together a diverse range of industry participants to address evolving market challenges and opportunities.
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About FXPA
The Foreign Exchange Professionals Association (FXPA) is a Washington-based organization dedicated to advancing the interests of the institutional FX market. Through education, research, and advocacy, FXPA engages with policymakers and industry stakeholders to promote a sound, liquid, transparent, and competitive global currency market. Learn more at www.fxpa.org.
Media
Julie Ros
Strategic Advisor, FXPA
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.
FXPA Elects New Officers, Directors at Annual Meeting
The Foreign Exchange Professionals Association (FXPA) elected a new slate of Officers and Board Members at its annual meeting on February 14, 2023.
Effective immediately, Susan Dauber, Head of Legal & Regulatory, Euronext FX, and Chairperson of Euronext Markets Singapore, is Chair of FXPA; Chip Lowry, Senior Managing Director at State Street, is Vice Chair; Lauren Rosborough Watt, Investment Manager at CalPERS, is Secretary; and Paul Houston, Global Head of FX at CME Group, continues as Treasurer. The four officers form FXPA’s Executive Committee, which sets the agenda for the upcoming year.
Dauber succeeds Acting Chair, Chris Leonard-Appleton, Head of FX Risk & Regulation, LSEG, who remains on the Board, and Lowry succeeds Tod Van Name, Global Head of FX Electronic Trading, Bloomberg, who was serving as Acting Vice Chair. Rosborough Watt succeeds Jordan Barnett, MD at BNY Mellon.
“It is an honor to be elected as Chair of the FXPA and to have this opportunity to continue Chris’ fine work and leadership,” says Dauber. “With recent volatility driven by global tensions, inflationary pressures and shifts in monetary policy, the FX market will undoubtedly remain top of mind. It would appear FX volumes are set to continue to grow in 2023 with an increasing interest in the APAC region and we look forward to continuing to expand the FXPA’s membership and outlook. I look forward to working with all members as we represent the collective voice of the FX market.”
In other news, Alex Blackmur, Director of FX, Corporate Finance and Strategic Investments at Microsoft, will lead a new Buy Side Working Group for FXPA. FXPA has recently increased its buy side Advisory Membership with the additions of Mesirow and Insight Investment.
FXPA also elected a slate of candidates to the Board, which is now comprised of: Martin Knudsen, Senior Product Manager, FX Electronic Trading, Bloomberg; Rosborough Watt of CalPERS; Mike Margolis, Assistant General Counsel, Cboe; Houston of CME; Dauber of Euronext US; Leonard-Appleton of LSEG; Blackmur of Microsoft; Christopher Matsko, Head of FX Trading Services, Portware; KC Lam, Head of FX and Rates, Singapore Exchange (SGX); and State Street’s Lowry.
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 to advance a sound, liquid, transparent and competitive global currency market to policymakers and the marketplace through education, research and advocacy. Since 2014, the FXPA has established itself as a respected industry thought-leader and resource for 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
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