For years, one of the prime focuses of the Global Foreign Exchange Committee (GFXC) has been to encourage greater adoption of the FX Global Code among buy-side market participants. Since the code was updated in 2019, however, the GFXC’s success in this endeavour has been rather limited.
According to the committee’s official register, of the 1,162 financial firms that have signed the FX Global Code to date, 12% include asset managers, corporate treasuries, hedge funds, insurance companies, pension funds and sovereign wealth funds. This is a slight improvement on 2019 when just 9% of code signatories were from the buy side.
But for the majority of buy-side market participants there remains a reluctance to sign up, with many feeling that the code doesn’t…