ACIFMA considers that, in this instance, the case has raised issues concerning the best practices of the FX market. ACIFMA has considered the points raised in the case regarding the proper functioning of the FX market according to best practice at the time of the Fixing order and now . Having reviewed the evidence ACIFMA believes that the judgement raises serious concerns with regard to the proper functioning of the FX market with regard to risk management of FX Fixing orders. Our arguments can be found in the filed Amicus Brief.
Ethical conduct is one of the 3 core pillars and values of ACIFMA. Therefore, ACIFMA defends that criminal prosecution should only be considered when dealing with inappropriate market behaviors. ACIFMA is of the opinion that the judgement, if allowed to stand, raises serious concerns for the FX market and the juxtaposition of best practice and the legal process. ACIFMA, having filed with the US Courts the Amicus Brief, hopes that the appeal will consider carefully the arguments raised and that the Court will pay heed to reversing the decisions based on a misunderstanding of how a Fixing order is appropriately hedged and the function of bilateral ISDA agreements.
We would like to express our appreciation to Jack Drohan, president of ACI America that had a key role on the extensive preparatory work, crucial for the presentation of the Amicus Brief. Our sincere thanks also go to our Chairman, Bruno Langfritz, to the Chair of the CFP, David Woolcock, and to the Chair of the FXC, for their instrumental work on this important document.