GFMA Impact of ESG on Forex Market

On Sep. 15, GFMA tells FX participants to adhere to FX global code.

  • GFMA issued a white paper exploring where and how ESG themes are, or may be implicated in FX, and what challenges, opportunities and headwinds this brings with it.
  • Paper
  • Identified/discussed several areas where ESG factors come into play for FX, including a specific call to action in respect of FX industry agreed principles re ESG good practice.
  • Areas identified where ESG factors could have direct/indirect impact on FX industry are policy, laws, regulation, industry best practices; corporate and business-line ESG goals and performance; embedding ESG factors into currency strategy, FX product offerings.
  • Call to Action
  • GFMA issued call to action for wholesale FX market participants who are yet to adhere to the FX Global Code to do so, on basis code adherence can evidence support for ESG goals as well as being an indicator of action towards developing good ESG credentials.
  • Follows GFXC Jul. 2021 issued code, templates, pre-hedging paper, see #111899.
  • Adherence to this code should, in the GFMA's view, represent a minimum standard for demonstrating social responsibility and good governance in the context of ESG.

Regulators GFMA
Entity Types B/D; Bank; Depo; Exch; FDM; IA
Reference PR, 9/15/2021; ESG
Functions Compliance; C-Suite; Financial; Legal; Operations; Reporting; Risk; Technology; Trade Reporting; Trading
Countries Global Regulator
Products Clearing; Derivatives; Forex; Fund Mgt; Futures; Securities
Regions Global
Rule Type Guidance
Rule Date 9/15/2021
Effective Date 9/15/2021
Rule Id 116024
Linked to Rule :; 111899
Reg. Last Update 9/15/2021
Report Section International

Last substantive update on 09/17/2021