The Global Foreign Exchange Committee (GFXC) which met in Sydney last December established five areas of focus for updating the FX Global Code including algo execution and transaction cost analysis (TCA). The GFXC agreed that the increasing usage of algorithmic execution warranted a review of the Code’s existing guidance in this area. It was also decided to consider how guidance around TCA could be incorporated into the Code. The GFXC also discussed the broader findings from its Annual Survey of market participants conducted in September and October which showed that the majority of respondents using algorithms do so to improve their execution outcomes and minimise information leakage. Commenting on the feedback on the Code that it had received from market participants, GFXC Chair Dr Guy Debelle said “the strong consensus from the feedback is the Code remains fit-for-purpose. There are, however, a few key areas which warrant close review to ensure the Code is providing appropriate guidance and contributing to an effectively functioning market.”
