php_code_sniffer not including phpcs.xml standard

I thought I had the standard path wrong but after updating php_codesniffer from composer it started reading phpcs.xml.

Ref:
squizlabs/PHP_CodeSniffer#1660

composer.json

@@ -76,7 +76,7 @@
         "codeception/codeception":         "~2.3.0",
         "phpmd/phpmd":                     "~2.6.0",
         "sebastian/phpcpd":                "~2.0.0",
-        "squizlabs/php_codesniffer":       "~2.8.0",
+        "squizlabs/php_codesniffer":       "~3.2.0",
         "block8/php-docblock-checker":     "~1.3.0",
         "phploc/phploc":                   "~4.0.0",
         "jakub-onderka/php-parallel-lint": "~0.9.0",