FX Global Code targets buy side firms
(4 December 2019 – Australia) The Global Foreign Exchange Committee (GFXC) has called on buy side institutions to join their sell side peers in adopting the code of standards and ethics, known as the FX Global Code.
The global body and the FX Code, set up to enforce better standards among foreign exchange traders following multi-billion dollar scandals, said it would prioritise signing up buy side funds, including asset managers and hedge funds.
The GFXC also said it was examining how the code could deal with anonymous trading platforms, and the use of algorithms, that can at times struggle to deal with market disruptions.
While the code remains fir for purpose, some areas warranted reviews and updated guidance to “remain in step with the evolution of the FX market,” Guy Debelle, chair of the committee said.
About 90 percent of sell-side firms, which include intermediaries such as brokers and traders at banks, are signed up to the code, however buy-side institutions have been slow in adopting the code.