Updat (2020)

Notes for year-end and new year of Japan

Notice on publication of a case study for adherence process of the FX Global Code in Japan

Notes on Work From Home

GFXC Issues Statement on FX Market Conditionss

Notes on countermeasures for Novel Coronavirus

Notes for year-end and new year of Japan

Notes for Golden Week of Japan

Notes for year-end and new year of Japan

24 Dec 2020
Tokyo Foreign Exchange Market Committee

The European and U.S. market will be closed during Christmas holidays and the Tokyo market will be closed consecutively during the New Year holidays. Please be aware that liquidity in the foreign exchange market may greatly decrease due to the limited number of market participants and the continuing WFH environment from the outbreak of COVID-19. Please be cautious when trading.

Notice on publication of a case study for adherence process of the FX Global Code in Japan

15 Dec 2020
Tokyo Foreign Exchange Market Committee

The Global Foreign Exchange Committee (‘GFXC’) publishes case studies that illustrate companies' various considerations and steps to adhere to the FX Global Code (‘Code’), provided voluntarily by market participant from various jurisdictions and segments. A case study was provided from a buy-side member of the Tokyo Foreign Exchange Market Committee (‘TFXC’) to the GFXC, which has been made available at its website. Please see the following link for details.

https://www.globalfxc.org/case_studies.htm

The case studies are intended to help market participants in their journey to endorse the Code and sign the Statement of Commitment. The case studies are a set of examples which illustrate companies' considerations in their internal assessment and steps to adhere to the Code, particularly taking account of the Code's proportionality concept.

Notes on Golden Week

Tokyo market will be closed during Japan's Golden week (*). Due to the State of Emergency, there may be limited number of market participants compared to the average year. FX market participants may face more operational constraints reflecting the State of Emergency and lockdown in some financial centres. As it is anticipated that there will be significant decrease in liquidity in FX markets before and after Golden week, please take extra caution when trading.

(*) 2nd May to 6th May.

Notes on Work From Home

Please take extra caution on the below principles or any other principles, considering the size and complexity of the FX Market activities you are engaged with when trading.
Especially for market participants who will be trading from home or any other environment from your usual trading location, please take in to account the related operational risks, and be well prepared for trading by carefully having necessary communications with your customers or interbank counterparties.

The body, or individual(s), that is ultimately responsible for the Market Participant’s FX business strategy and financial soundness should put in place adequate and effective structures and mechanisms to provide for appropriate oversight, supervision, and controls with regard to the Market Participant’s FX Market activity (Principle 4)
Market Participants should have appropriate policies and procedures to handle and respond to potentially improper practices and behaviours effectively (Principle 7)
Market Participants should handle orders fairly, with transparency, and in a manner consistent with the specific considerations relevant to different order types (Principle 10)
Market Participants should clearly and effectively identify and appropriately limit access to Confidential Information (Principle 19)
Market Participants should not disclose Confidential Information to external parties, except under specific circumstances (Principle 20)
Market Participants should provide personnel with clear guidance on approved modes and channels of communication (Principle 23)
Market Participants should have frameworks for risk management and compliance (Principle 24)
Market Participants should maintain an appropriate risk management framework with systems and internal controls to identify and manage the FX risks they face (Principle 26)
Market Participants should have practices in place to limit, monitor, and control the risks related to their FX Market trading activity (Principle 27)
Market Participants should have appropriate processes in place to identify and manage operational risks that may arise from human error, inadequate or failed systems or processes, or external events (Principle 32)
Market Participants should keep a timely, consistent, and accurate record of their market activity to facilitate appropriate levels of transparency and auditability and have processes in place designed to prevent unauthorised transactions (Principle 36)

If any uncertainties, please contact the members of the Tokyo Foreign Exchange Market Committee.

GFXC Issues Statement on FX Market Conditions

The following Statement was issued by the Global Foreign Exchange Committee (GFXC) on 26th March.
Considering the recent market conditions in the financial markets including the foreign exchange market, please take extra caution when trading.

https://www.globalfxc.org/press/p200326.htm

Given the intense volatility seen in global financial markets this month, it is possible that FX market participants may execute larger than usual FX volumes during end-of-month benchmark fixings. In addition, FX market participants may face more operational constraints reflecting lockdown in some financial centres. In light of these possible developments, significant volatility and price movements may be observed during FX fixings in the coming days.
To reduce the potential impact of this volatility on market functioning, and market participants’ execution outcomes, the Global Foreign Exchange Committee (GFXC) encourages market participants to:

Give appropriate consideration to market conditions and the potential impact of their transactions and orders [see Principle 12, FX Global Code];
Be aware of the risks associated with the transactions they request and undertake [see Principle 9, FX Global Code];
Clearly understand how orders will be handled and transacted [see Principle 9, FX Global Code];
Price transactions in a manner that is transparent and consistent with the risk borne in accepting such transactions [see Principle 10, FX Global Code];
Exercise particular care and attention when handling orders that have the potential to have sizable market impact [see Principle 10, FX Global Code];
Ensure adherence to internal guidelines and procedures for collecting and handling executing orders [see Principle 10, FX FX Global Code] and;
Handle orders with fairness and transparency [see Principle 9, FX Global Code].

In these unprecedented times, we encourage market participants to be aware of how their actions can ensure the FX market remains robust, open, fair and appropriately transparent such that market participants are able to confidently and effectively transact at prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour.

Notes on countermeasures for Novel Coronavirus

Due to the coronavirus outbreak, sudden rise in volatility and decline in liquidity is being noticed in the financial markets including the foreign exchange market. Please take extra caution when trading.

Notes for year-end and new year of Japan

This year the Tokyo market will be closed from December 31st to January 3rd . Frist trading day for Japan in the year 2020 will be on Monday , Jan 6th. Please use extra caution when trading in Asia time as we can expect sudden volatility due to lack of liquidity during these Tokyo holidays.

Notes for Golden Week of Japan

As Tokyo market is on a holiday due to Japanese national holiday (Golden week^* ), there will be limited number of market participants, and it is anticipated that there will be significant decrease in liquidity in FX markets during Asian trading hours.
Please give close attention when trading.

* Golden week is a weekend starting from 29th April to 6th May.