GFXC finds widespread support for FX algo cover sheets

The Global Foreign Exchange Committee (GFXC) has reported widespread support for the introduction of standardised disclosures cover sheets which FX algo providers would be required to publish.

GFXC finds widespread support for FX algo cover sheets
Guy Debelle

Ahead of its most recent meeting in December, GFXC members received papers prepared by the working groups for each of the focus areas of the review of the FX Global Code, which includes the area of algorithmic trading. GFXC Chair, Guy Debelle, says: “The review of the Code is progressing well. One major theme across all areas of the review is the importance of clear and accessible disclosures. There is widespread support for standardised disclosures cover sheets. They have the potential to move the FX market forward in a material way, promoting greater transparency and supporting market participants in making informed choices.” The Working Group on Disclosures and Transparency proposed the creation and adoption of standardised disclosure cover sheets to help market participants navigate what it said can be “lengthy and complex” disclosures documents. The GFXC were supportive of the proposal and asked the Working Group to continue developing cover sheets for liquidity providers and platforms. The proposed changes to the Code will be revised on the back of feedback and then recirculated to the FXCs for another round of detailed feedback in March 2021.