The Foreign Exchange Professionals Association (FXPA) has continued to meet with a plethora of international regulators, central banking entities, and legislators in the UK, part of a continued effort to address a series of initiatives, ranging from global conduct to infrastructural change.
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The FXPA is a Washington-based organization for the foreign exchange (FX) industry that collectively represents the shared interests of brokers and market participants in the FX industry. The multinational group, along with its growing membership composition, was initially formed with the intent of advocating the interests of the FX industry to key regulators and policymakers via education, research, and transparency.
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Earlier this month, the FXPA kicked off a round of meetings with global institutions, which held talks with the UK’s Financial Conduct Authority (FCA), the Bank of England, the Prudential Regulatory Authority, as well as multiple peer FX trade associations – the primary goal of the meetings was to address a recent comment letter submitted to the Securities and Exchange Commission (SEC), which had called for an FX exemption of proposed funds’ use of derivatives rules.
Code of Conduct in Focus
In addition, the FXPA was gearing up for the formulation of a global code of conduct, with hopes of coalescing a final document in conjunction with the aforementioned regulatory authorities. Such a document would be important for the industry as it would help define a more comprehensive framework for market participants, as well as distinctions between agency and principal roles.
Other topics of note have over the past month also included many other conduct questions and prevalent issues, such as the handling of stop-loss orders and markup transparency, as well as last look practices. In particular, these issues have long served as contentious factors in the industry itself, and addressing them in a unified manner would go a long way towards helping to define and streamline what has to date been a fragmented approach for industry participants.