Canadian Foreign Exchange Committee: Document of Objectives and Organization

The Canadian Foreign Exchange Committee (CFEC) was founded in 1989 to provide a forum for the regular discussion of issues and developments pertinent to the foreign exchange market, including the review of market practices and procedures.

August 2024

I. Objectives

The objectives of the Committee are:

• to provide a forum for the regular exchange of views on wholesale foreign exchange market issues and developments;
• to provide a channel for communication between the wholesale foreign exchange market in Canada and relevant organizations and official institutions within Canada and abroad;
• to develop and promote guidelines for best practices in the FX market, including through the FX Global Code;
• foster the Code’s adoption amongst Canadian market participants active in the wholesale FX market.

II. Organization

1. The Committee is comprised of experts on wholesale foreign exchange markets drawn from institutions actively participating in the Canadian foreign exchange market and the Canadian dollar market globally. The Committee will be jointly chaired by a senior representative of the Bank of Canada and a CFEC member.
2. The co-chair will be appointed by the Bank of Canada for a term of 36 months. The appointment can be renewed for one additional term.
3. CFEC membership will be comprised of a diverse set of institutions and will include participants from buy- and sell-side firms, as well as FX infrastructure providers.
4. Membership will be determined by the co-chairs and will be reviewed on a regular basis to ensure the Committee’s composition is broadly representative of the wholesale FX market in Canada.
5. As a condition of membership of the Committee, institutions from which individual members are drawn are required to confirm their commitment to conducting their foreign exchange market activities in a manner consistent with the principles of the FX Global Code by adopting the Statement of Commitment within a reasonable period (as determined by the co-chairs) after joining the Committee. CFEC is a member of the Global Foreign Exchange Committee (GFXC), an association of foreign exchange committees that is responsible for maintaining and updating the FX Global Code.
6. The Bank of Canada will provide the secretariat function to the Committee. Non-member representatives of the Bank of Canada may attend Committee meetings, as determined by the cochairs. A representative from the Department of Finance is an ex-officio member.
7. The Committee will not exceed 24 members, without the explicit agreement of the co-chairs. While generally not a decision-making body, in instances where a decision is required the Committee operates on the basis of broad consensus.
8. Members may appoint a substitute member, with the approval of the co-chairs, from their own organizations, to attend on their behalf on an exceptional basis.
9. The term of membership is not fixed, but an individual’s membership may be reviewed every 24 months to allow for membership rotation.
10. Any change in a member’s position with his or her employer will result in an automatic review of their membership.
11. Although drawn from institutions that are active in the wholesale foreign exchange market and that are committed to conducting their foreign exchange market activities in a manner consistent with the principles of the FX Global Code, members serve on the Committee as individuals, and are expected to reflect the broad interests of the foreign exchange market.
12. The Committee aims to meet quarterly, or more frequently, as required. Members are expected to attend most meetings in-person, except in exceptional circumstances and with the explicit prior agreement of the co-chairs. Meetings may be held virtually or in a hybrid format, at the discretion of the co-chairs.
13. The Committee may form ad hoc sub-committees, chaired by any of its members, to study specific issues. Outside participants may be invited to serve on such sub-committees.
14. The secretariat works with the Committee members to prepare meeting agendas and circulates draft meeting minutes to members for their review. When final, minutes are posted on the CFEC website.