As the leading global financial market infrastructure within the FX ecosystem, we are committed to, and strongly support, the adoption of the FX Global Code by all market participants.
The FX Global Code is a set of global principles of good practice for the FX market. It provides a common set of guidelines to promote the integrity and effective functioning of this vital part of the global financial system, with a turnover of more than USD6.5 trillion a day. It was developed through a partnership between central banks and market participants around the globe. It promotes a robust, fair, liquid, open and appropriately transparent market in which market participants can confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behavior. The Code is intended to serve as a supplement to any and all local laws, rules, and regulations by identifying global good practices and processes. It is maintained and updated by the Global Foreign Exchange Committee (GFXC).
How we support
Since the FX Global Code’s inception, we have been actively engaged in its development and continue to contribute to discussions to its enhancement, in particular regarding the settlement risk principles.
The GFXC published an update to the FX Global Code in July 2021 which strengthened the settlement risk principles on payment-versus-payment and netting.
Market Participants should reduce their Settlement Risk by settling FX transactions through services that provide PvP settlement where possible. The use of automated settlement netting systems is encouraged.
Market Participants should properly measure, monitor and control their Settlement Risk, where PvP is not available. As recently updated, Principle 50 continues to emphasize the confirmation process of bilateral netting and the agreement of predetermined cut-off points.