FX MiFID Working Group

Working documents for the Global FX Division MiFID WG.

The WG is focused on implementation of the MiFID/R requirements for FX, working closely with other trade associations to harmonise cross-asset approaches where possible.

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Correspondence

GFMA Submits Comments to ESMA in Response Paper on the Clearing Obligation under EMIR

September 2013  |  Correspondence  |  Press Releases

The Global Foreign Exchange Division (GFXD) of GFMA provides comments to the European Securities and Markets Authority (ESMA) in response to the Discussion Paper on the Clearing Obligation under the European Market Infrastructure Regulation (EMIR), ESMA/2013/926. 

Given the global nature of the Foreign Exchange (FX) market, GFMA emphasizes the importance in ensuring that the regulatory treatment of FX products in multiple, global jurisdictions remains consistent. GFMA shares its recommendations are responses to questions including the detailed rationale behind the exemption to any central clearing obligation of deliverable over-the-counter (OTC) FX forwards and swaps by the U.S. Department of Treasury. GFMA strongly recommends that ESMA follow a similar approach by not issuing a clearing obligation for such products.

GFMA Affiliate Briefing Note - MiFID and Transparency in Foreign Exchange Derivatives

February 2012  |  Correspondence  |  Press Releases

GFMA's European affiliate, the Association for Financial Markets in Europe (AFME), authored a briefing note on the European Commission's 2010 review of the Markets in Financial Instruments Directive (MiFID), specifically in regards to transparency in foreign exchange derivatives.

Background: 

As part of its 2010 review of the Markets in Financial Instruments Directive (MiFID), the European Commission is expected to propose legislation extending transparency requirements into the non‐equities markets. The Committee of European Securities Regulators (CESR) will provide technical advice to the Commission in the context of non‐equities markets transparency and has consulted on the following markets: Corporate Bonds, Structured Finance products (ABS and CDOs), Credit Default Swaps (CDS) and Derivatives (Interest Rate, Equity, Commodities and Foreign Exchange).

AFME’s general position on all aspects of non‐equities transparency apart from structured finance is set out in Briefing Paper [BN10‐03]. This paper specifically covers the market in Foreign Exchange (FX) Derivatives.

 

GFMA Affiliate Briefing Note - MiFID and Foreign Exchange

February 2012  |  Correspondence  |  Press Releases

GFMA's European affiliate, the Association for Financial Markets in Europe (AFME), authored a briefing note on the Markets in Financial Instruments Directive (MiFID), specifically in regards to foreign exchange.
 

Introduction:
 

The Markets in Financial Instruments Directive (MiFID) was designed to bring efficiency to the European Equity market through competition and to ensure that investor protection was consistently achieved across national boundaries. The MiFID review has now been significantly expanded and introduces new requirements for non‐equity products.

FX trading is a 24‐hour market that underpins international trade and investing. The $4 trillion per day market, its ubiquitous nature, and the simplicity of the vast majority of products mean that it has already developed into a highly transparent, liquid and deep marketplace. Market structures have similarly evolved to ensure access, transparent pricing and end user choice. Preserving these aspects are key to ensuring that such end users are able to hedge commercial risks efficiently and in a bespoke manner.

The proposed application of MiFID to FX should be carefully considered in the light of the market’s global nature and structure and that many of the objectives of MiFID are already met by the market.

We are concerned that a broad expansion of ‘equities‐style’ regulation to capture FX raises the risk of unintended consequences. We urge the Commission to review MiFID’s objectives in the specific context of the FX market to ensure that any measures are appropriately and efficiently tailored.

 

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Resources

Invitation to Two MAG/MiFID Vendor Outreach Meetings (June 2017)

June 2017  |  Policy Resource  |  Market Architecture Group

The Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) will be hosting two vendor outreach sessions of its Market Architecture Group and MiFID Working Group to discuss issues related to the implementation of MiFID.

Invitation to MAG/MiFID Vendor Outreach (February 2017)

February 2017  |  Policy Resource  |  Market Architecture Group

The Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) will be hosting a vendor outreach of its Market Architecture Group and MiFID Working Group to discuss issues related to the implementation of MiFID.

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News

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