IGTA Journal - Summer 2018

9 Having looked back on our achievements over the past year, the GFXC is committed to build on the momentum to further promote the Code. 10 I will share briefly on the GFXC’s key priorities in the year ahead. FX Global Code: Looking Forward 11 First, to step up outreach efforts to the buy side. To those in the audience from the buy-side, you are important participants in the global FXmarket whom we will engage further. The Code is intended to promote a more transparent, liquid, fair and sustainable FX market for all FX market participants. It is not a Code for the sell-side only, nor is it for only select groups of the market. It is single Code that has relevance to all who have a stake in the global FXmarket. While we have seen about 420 Statements on the Global Index, only a small number are from buy-side market participants. At the global level, there is acknowledgement that more can be done to demonstrate to the buy-side community the benefits of the Code, and to articulate more clearly the benefits of adherence. For example, the Code helps the buy-side understand the practices that your counterparties abide by, and helps to inform what you should expect from the relationship, and in turn, who you may want to transact with. The Code also provides a useful opportunity for the buy-side to benchmark your internal processes against global standards of best practices. The GFXC has launched a group that will focus on buy-side outreach to create greater awareness and adoption of the Code. This will not be an effort bound by time, but will be a journey and one which we are committed to. In Singapore, we have seen strong support from buy-side associations and we will continue to encourage Singapore-based buy-side market participants to issue Statements to demonstrate adherence. 12 Second, to continue the existing work on cover and deal which arose in response to the feedback received from the consultation on “last look” practices, and to strengthen FX disclosures. On this front, further work will be done to understand the role that disclosures play in informing market participants how their trade requests are handled in ‘cover and deal’ arrangements. In addition, the GFXC hopes to develop a framework that can assist market participants to review or develop their client disclosures, and to identify any challenges to appropriate transparency. 13 Third, to continue to embed and integrate the Code into the FXmarket. A survey was conducted by the GFXC last year, to assess the industry’s baseline in Code awareness and adoption. We plan to conduct another survey later this year, to see how market participants are embedding the Code and how practices and behaviours have evolved. This survey will be rolled out across the key FX jurisdictions likely through the FXC network. We look forward to your active participation when the survey is rolled out. From the survey findings, we hope to identify ways to deepen adoption and broaden awareness over time and across jurisdictions. 14 These efforts need the support of you as market participants, and we hope that you can do 3 / 5 BIS central bankers' speeches IGTA eJournal | Summer 2018 | 31