ACI Briefing Q4 2017
The ACI Briefing summarises news and events from around the world and is distributed to all our members and friends of ACI.
This Q4 2017 issue includes the following stories:
- ACI to Smooth Transition to New Era - The foreign exchange industry faces a number of challenges as the FX Global Code of Conduct is fully implemented, MiFID II hits the statute books and participants continue to deal with the aftermath of conduct issues from several years ago. ACI FMA’s Managing Director, Brigid Taylor, believes the Association has to tools and services on offer to not only help the industry face these challenges, but to overcome them.
- ACI FMA Creates Two Professional Education Roles - ACI – The Financial Markets Association has announced the appointment of two additional professional roles to enhance its educational and attestation offerings.
- ACI Provides Feedback on Principle 17 - ACI FMA’s new Director of Education, Paul Chappell, also chaired ACI’s subcommittee to respond to the feedback request regarding any possible changes to Principal 17 of the FX Global Code, specifically the language around the practice of last look.
- GFXC to Adjust Language on Principle 17 - The Global Foreign Exchange Committee (GFXC) met to consider the results of its consultation over the wording in Principle 17 of the FX Global Code of Conduct, specifically relating to the use of last look, and says it has concluded that Principle 17 “should indicate that market participants should not undertake trading activity that utilises the information from the client's trade request during the last look window”.
- ACI Russia to Lead Formation of Local FXC - ACI Russia has unveiled a Russian language version of the FX Global Code as well as plans to create the Moscow FX Joint Standing Committee, which it says will be based upon the Self-Regulatory Organisation National Finance Association (SRO NFA).
- ACI Adjusts Examination Suite - Following the success of the newlycreated ACI FMA FX Global Code Certificate, to meet the requirement for market participants to attest to the Code, the Association has taken the decision to remove the code of conduct sections from its Dealing Certificate and Operations Certificate syllabuses.
- What Does an Adherence Register Mean? - One of the key issues raised during the creation of the Global FX Code concerned adherence – how were market participants to know that their counterparties had adopted the Code? This was especially pertinent given how a group of central banks and, provisionally, members of the FX Working Group’s sub-committee the Market Participants’ Group have committed to avoiding dealing with firms that decline to sign up where possible.
- ELAC to Engage with Regional Codes - In addition to its main focus on the FX Global Code, ACI FMA’s ELAC will also support education and certification on several regional codes of conduct.
- RegAT is Dead But Fast Markets Still a Challenge for Regulators - The changing mood amongst US regulators towards the regulation of automated trading was reflected in a speech by CFTC Commissioner Brian Quintenz in October, when the newlyconfirmed regulator said the controversial RegAT rule was “D-E-A-D”.
- Predicting the Unpredictable: Was the EUR/CHF Break Signalled? - A paper published by the Bank for International Settlements (BIS) studies events in the FX market leading up to the removal of the EUR/CHF floor by the Swiss National Bank in January 2015, and while it is not conclusive, it does find evidence that some option markets were predicting the break lower in the cross.
- FMSB Annual Report Highlights Progress made in FICC Reform - The UK’s FICC Markets Standard Board (FMSB) has issued its 2017 Annual Report setting out the progress it has made to enhance standards of behaviour in the wholesale fixed income, currencies and commodities markets.
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A new code of conduct administered by a body akin to the Banking Standards Board may have value.
News from ACI International
In order to provide ACI National Associations [and other stakeholders] with uniform language