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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.

September 2017

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; and
  • to review and provide feedback on the FX Global Code, as it evolves.

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 Chair of the Committee is a senior representative of the Bank of Canada.
  2. The composition of the Committee is to reflect an appropriate range of wholesale Canadian dollar market participants, including representatives from the buy-side of the market as well as the major sell-side participants. Representation will also reflect such other interests of the foreign exchange community as the standing Membership Sub-Committee believes will contribute positively to the ongoing work of the Committee.
  3. 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 Chair) 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.
  4. 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 Chair. A representative from the Department of Finance is an ex-officio member.
  5. The Committee will not exceed 24 members, without the explicit agreement of the Membership Sub-Committee. While generally not a decision-making body, in instances where a decision is required the Committee operates on the basis of broad consensus.
  6. Members may appoint a substitute member, with the approval of the Chair, from their own organizations, to attend on their behalf on an exceptional basis.
  7. The membership term will be dependent on the type of institution. Sell-side members will normally be appointed for a term of three years, while buy-side and other members will be appointed for a two-year term to allow for more rotation. Members may be re-appointed when their terms end. For consistency, all terms will be deemed to end on April 30.
  8. 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.
  9. The Committee meets three times each year, or more frequently, as required. Meetings are held either at the Bank of Canada or at member institutions. Prior to year-end, meeting dates are determined for the following calendar year. In unusual circumstances, additional meetings may be called. Attendance must be in-person, except in exceptional circumstances and with the explicit prior agreement of the Chair.
  10. A standing Membership Sub-Committee identifies and selects individuals for membership, based on their personal stature, breadth of experience and anticipated ability to contribute to the work of the Committee. The Membership Sub-Committee will be chaired by the Bank of Canada member and the three other Sub-Committee members serve a term of three years, with each one expiring in a different year on April 30.
  11. 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.
  12. 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.