FX Global Code
What is the FX Global Code?
The FX 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 through a partnership between central banks and market participants from 16 jurisdictions around the globe. The Code is maintained and updated by the Global Foreign Exchange Committee (GFXC).
The Six Leading Principles
Market Participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
Market Participants are expected to have a sound and effective governance framework to provide for clear responsibility for and comprehensive oversight of their FX Market activity.
Market Participants are expected to exercise care when negotiating and executing transactions in order to promote a robust, fair, open, liquid, and appropriately transparent FX Market.
Market Participants are expected to be clear and accurate in their communications and to protect confidential information to promote effective communication that supports a robust, fair, open, liquid, and appropriately transparent FX Market.
Market Participants are expected to promote and maintain a robust control and compliance environment to effectively identify, manage, and report on the risks associated with their engagement in the FX Market.
Market Participants are expected to put in place robust, efficient, transparent, and risk-mitigating post-trade processes to promote the predictable, smooth, and timely settlement of transactions in the FX Market.
Latest Updates to the Code
The Global Foreign Exchange Committee (GFXC) released the 2024 update to the FX Global Code in January 2024, following extensive consultation with market participants. Key changes include:
- Enhanced guidance on algorithmic trading and platform disclosure
- Updated principles on pre-hedging practices
- Additional guidance on mark-up and transaction cost analysis
- Strengthened language around diversity, inclusion, and conduct policies
- New guidelines for sustainable FX market practices
How to Adopt the Code
Market participants who wish to demonstrate their commitment to adopting the good practices set forth in the FX Global Code can do so by issuing a Statement of Commitment.
Step 1
Review the FX Global Code and evaluate your current practices against its principles.
Step 2
Implement any necessary changes to align your operations with the Code's principles.
Step 3
Issue a Statement of Commitment and register it with the appropriate public registry.