The Foreign Exchange Committee is an industry group that has been providing guidance and leadership to the global foreign exchange market since its founding in 1978.
The FXC includes representatives of major financial institutions engaged in foreign currency trading in the United States and is sponsored by the Federal Reserve Bank of New York. Aware of the strong integration of the global foreign exchange market, the FXC is also an active partner to other foreign exchange committees and industry associations worldwide.
The FXC’s objectives include:
- serving as a forum for the discussion of good practices and technical issues in the FX market,
- fostering improvements in risk management in the FX market by offering recommendations and guidelines, and
- supporting actions that facilitate greater contractual certainties for all parties active in foreign exchange.
The FX market, which operates 24 hours a day, is the largest and most liquid marketplace in the global economy. According to the 2010 Triennial Survey by the Bank for International Settlements, daily turnover averages $4.0 trillion in the foreign exchange market.
The liquidity of the market gives businesses access to international markets for goods and services by providing the foreign currency needed to make transactions worldwide.
The FX market serves commercial and investment banks, foreign exchange dealers and brokerage companies, corporations, money managers (including pension, mutual fund, and commodity pool managers), commodity trading advisors, insurance companies, governments, and central banks.