Following the GFXC quarterly meeting, held in Sydney, the GFXC has announced a number of priorities in updating the FX Global Code.
Buy-Side Outreach: The GFXC has recognised the need to develop further materials for promoting the Code to buy-side market participants. This will include FAQs and case studies of firms which have adopted the Code. The Buy-Side Working Group will continue to work on increasing adherence.
Anonymous Trading: The Disclosures Working Group, will issue a new report on anonymous E-Trading landscape in 2020. Further updates to the Code may include use of unique identifiers / tags and the roles and responsibilities of market participants such as prime brokers.
Disclosures: Recognising the slow and lack of consistency by sell-side in producing effective disclosures, the GFXC is to set-up a working group to focus on ways to accelerate adoption.
Algorithmic trading and Transaction Cost Analysis (TCA): The GFXC is to review existing guidance on algrorithmic trading, and consider guidance around TCA within the Code.
Execution principles: The GFXC confirmed that execution principles in the Code, particularly those dealing with pre-hedging and last look, remain a concern within the industry and the need to respond. ack.