Australian Foreign Exchange Committee Meeting Minutes

Sydney – 25 November 2019

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Attendees

Christopher Kent, RBA (Chair); Guy Debelle, RBA (GFXC Chair); Keith Sedergreen, ACI Australia; Mark McCarthy, AFMA; Luke Marriott, ANZ; Winnie Tan, Bank of China; Philip Valvona, BHP Billiton (via conference call); David Hatzidis, CBA; Andrew Walsh, Citigroup; Lee Merchant, Deutsche Bank; David Kendrick, HSBC; Andrew Mourd, JP Morgan; Will Richardson, Macquarie Bank; Mark Lawler, National Australia Bank; Simon Watkin, NEX; Stuart Simmons, QIC; Gary Latner, Refinitiv; Simon Sukhaseume, SSGA; Graeme Edie, Westpac; Chris Knight, XTX Markets

Apologies

Simon Warner, AMP

Guests

Te Okeroa, Reserve Bank of New Zealand

Secretariat

Matthew Boge, RBA (Secretary); Jason Griffin, RBA

1. Competition Guidelines

The Chair reminded attendees that the meeting would be conducted in line with the RBA's Competition Law Guidance.

2. FX Benchmarks

The Secretariat presented data from Refinitiv highlighting market pricing and activity around London 4pm WM/Reuters fixings, with a focus on AUD/USD. Based on bilateral conversations held with market participants, the Secretariat summarised changes in market practices since the Financial Stability Board's FX Benchmarks Report was published in 2014. Members also discussed market price signals around the WM/Reuters fixings.

3. Global Foreign Exchange Committee (GFXC) Work Agenda

The GFXC will meet in Sydney in early December. The AFXC will be represented by its Chair and by the member from QIC. Additionally, Guy Debelle (RBA) is the Chair of the GFXC.

1. 3-year review of the FX Global Code

   The GFXC Chair provided an update on the 3-year review of the Code, noting that at its December meeting, the GFXC will agree on the priorities for its review, using feedback obtained from market participants (including AFXC members).

   The GFXC Chair also called for AFXC members to consider lending their services to the GFXC’s work during the coming year.

2. Report on the Role of Disclosures in Anonymous Trading

   Members discussed the draft GFXC Report The Role of Disclosure and Transparency on Anonymous E-Trading Platforms. This included a discussion on the role of ‘tags’ used by E-trading platforms and whether the Code’s principles provided sufficient guidance around their usage.

3. Other Items

   The GFXC Chair provided a brief summary of other agenda items for the December GFXC meeting.

4. General Business

The member from QIC provided an update on gaining greater adherence to the Code from buy-side participants in Australia, noting the welcome news that several prominent super funds had recently signed Statements of Commitment.

5. Next meeting

TBA