Settlement Risk, Transparency in Focus for Global FX Code Review

An industry committee that aims to stamp out misconduct in foreign exchange trading is revising its guidelines to increase transparency in the loosely-regulated market.

The Global FX Committee, or GFXC, which oversees a voluntary code of best practices for the $7.5 trillion-a-day foreign exchange market, met in Frankfurt this week as it works to conclude a review of its guidelines by December.

The code has helped inhibit the types of manipulation seen in prior foreign exchange rigging scandals since the guidelines took effect in 2017, said Gerardo Garcia, head of operations at the Bank of Mexico and the ...