Role of the AFXC
The Australian Foreign Exchange Committee (AFXC) is a representative forum of the Australian foreign exchange market operating under the sponsorship of the Reserve Bank of Australia (RBA). Membership is drawn from the primary participants in the foreign exchange market including the leading foreign exchange banks, corporates, asset managers and the main electronic brokers. CLS Bank, the Association Cambiste Internationale (ACI) and the Australian Financial Markets Association (AFMA) are also represented. The Chairman is elected from the Committee and the RBA provides a permanent secretary to the Committee.
The AFXC has evolved from the Foreign Exchange Market Consultative Group which the RBA formed in 1984 following the float of the Australian dollar in December 1983.
Objectives of the AFXC
The objectives of the AFXC include:
- To provide a forum for FX market participants to discuss topical issues in the FX market;
- To develop and promote guidelines for best practice in the FX market;
- To represent Australian interests in regional and global discussions, including on the Global Foreign Exchange Committee
- To act as a conduit between the Reserve Bank of Australia and the professional foreign exchange market.
Members of the AFXC
The AFXC is a committee of organisations. Responsibility for choosing members of the committee resides with the RBA. Member organisations will be chosen according to their participation in the foreign exchange market and their overall significance. It is a requirement of AFXC member organisations that they commit to adhering to the FX Global Code. Membership will remain flexible and will reflect changes as they occur in the market. Within each organisation, individuals are selected with regard to their specific responsibilities, and their stature in the marketplace. It is envisaged that all representatives of member organisations will play a very senior role in the management of the FX business in their respective organisation.
The Chairman will be selected for a term of up to three years.
The membership term for other committee members is open with the exception of corporate and asset managers. The term for corporate and asset managers will be 12 -18 months to allow for membership rotation.
The Committee may periodically designate smaller working groups or sub-committees to work on specific projects.
It is the responsibility of each individual member to actively contribute to the work of the Committee by communicating market issues, issues of concern from their own organisation or any other organisation that may not be represented and to generally offer their time and resources to facilitate the work of the Committee.
Meetings of the AFXC and Attendance
The Committee will meet three or four times each year, or by special request if needed to discuss a particularly topical issue. Members are expected to attend all meetings and alternates are discouraged unless fully briefed on committee business and suitably authorised to make decisions on behalf of their respective organisation. Where a member is absent for two consecutive committee meetings without an adequate explanation it may result in the termination of that organisation's membership.
Competition Law Guidance has been developed to ensure that all AFXC meetings are conducted in compliance with Australia’s competition laws.