The buy side could get more involved in adopting the FX Global Code – and soon.
The Global Foreign Exchange Committee, which oversees the FX Global Code, issued a statement on the FX Global Codes progress following its meeting late last week in Johannesburg, South Africa. In speaking to Traders Magazine, Curtis Pfeiffer, Chief Business Officer at Pragma Securities, said there were a number of takeaways from the meet – especially when it came to the buy side.
The GFXC acknowledges the need to conduct further work around transparency, disclosures and cover-and-deal trading, Pfeiffer began. A key highlight is the 300+ institutions that have signed up to date. The creation of a new group dedicated to strengthening buy-side engagement is an important step.
He added that upon further analysis of the public registers shows that, in relative terms, there are a smaller number of buy-side participants that have signed up to the Code. But that should likely change moving forward.
Initially, there was a perception that the Code was primarily aimed at the sell-side, and therefore the buy-side felt less urgency to sign up. By creating this group, the GFXC has made its intentions clear and we should see an uptick in buy-side adoption over the coming months.
