The Global FX Committee (GFXC) and Israeli FX Committee (IFXC)
What is the GFXC?
The Global Foreign Exchange Committee (GFXC) was established in May 2017 as a forum bringing together central banks and private sector participants with the aim of promoting a robust, fair, liquid, open, and appropriately transparent FX market in which a diverse set of participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behavior.
The organization includes 17 domestic committees that represent the countries or regions that enjoy full member status—Australia, Brazil, Canada, China, Eurozone, Hong Kong, India, Japan, Mexico, Russia, Scandinavia, Singapore, South Africa, South Korea, Switzerland, United Kingdom, and United States—and three associate member countries: Georgia, Indonesia, and Israel. The domestic committees are led by the central banks of each country or region.
Objectives of the GFXC
The objectives of the GFXC are:
To promote collaboration and communication among the local foreign exchange committees (FXCs);
To exchange views on trends and developments in global FX markets; and
To promote, maintain and update the FX Global Code (the Code) and to consider good practices regarding effective mechanisms to support adherence.
The Global Code
The FX Global Code is a set of global principles of good practice in the foreign exchange market, based on six central tenets: ethics, governance, transacting, information sharing, risk management and compliance with regulations, and approval and clearance processes.
The Global Code does not impose legal or regulatory obligations on Market Participants, nor does it act as a substitute for regulation. Rather it is intended to serve as a supplement to local laws, rules and regulations by identifying global good practices and processes.
The Bank of Israel signed and published the declaration (link) of commitment to the Global Code in 2018, and renewed its signature in August 2022.
Israel and the GFXC
In 2018, Bank of Israel Governor Dr. Karnit Flug reached a decision, following which the Bank of Israel offered its candidacy as a member of the GFXC.
In October 2020, the Bank of Israel was accepted to the organization with Associate Member status, with the understanding that it would become a full member at a later stage.
In June 2022, the first conference of the Israel Foreign Exchange Committee (IFXC) was held, led by the Bank of Israel, and with the participation of various Israeli market participants.