Central banks welcome new global FX code of conduct

The code is voluntary and applies to wholesale FX market participants.
The code is voluntary and applies to wholesale FX market participants. PHOTO: REUTERS

A group of central banks yesterday welcomed the publication of the FX Global Code, a single global code of conduct for the wholesale foreign exchange market.

The code was launched yesterday after it was endorsed at the Global Foreign Exchange Committee meeting in London on Wednesday.

The code has been developed through a collaborative process between the Bank for International Settlements' Foreign Exchange Working Group and private-sector market participants.

The code sets out principles that promote a robust, fair, liquid, open and transparent market, underpinned by high ethical standards. The code is voluntary and applies to wholesale FX market participants.

The Bank of Korea, the Hong Kong Monetary Authority, the Monetary Authority of Singapore, the Reserve Bank of Australia and the Reserve Bank of India said in a statement that they strongly support the principles of good practices within the code and will be engaging local market participants to promote adherence to it.

Given the rising volume of FX activity taking place in Asia, they encourage all market participants to adhere to the principles of the code.

Market participants can show their commitment to stick to the code through the Statement of Commitment published as part of the code. The code and information related to adherence can be found at www.globalfxc.org.

A version of this article appeared in the print edition of The Straits Times on May 26, 2017, with the headline 'Central banks welcome new global FX code of conduct'. Print Edition | Subscribe