Market evolution: FX Global Code

The Bank of International Settlements (BIS) today launched the FX Global Code designed to help restore confidence and promote the effective functioning of the wholesale FX market.

The FX Global Code sets out principles of best practice and provides guidance about what sort of practices are acceptable, and what are not, in the FX market. The Code is intended to strengthen the integrity and effectiveness of the wholesale FX market, an initiative warmly welcomed by the ACT.

ACT Chief Executive Caroline Stockmann said:

“The introduction of the FX Global Code, whilst voluntary, sets the standards expected of all those that participate in the FX market, be they buy-side or sell-side. Not only does it set out best practice for corporates, but it also, importantly, enables corporates to understand what they should expect from their banks when trading FX.”

Although voluntary, this Code is applicable to all market participants who are expected to adopt it proportionally to their level of activity and complexity of operation. The ACT encourages members to align their practices with those recommended by the Code.

To assist in this, the ACT will shortly be issuing a Briefing Note to assist corporates with their understanding and implementation of the FX Global Code.

The Press Release about the launch of the FX Global Code can be found here.

and the FX Global Code here.

Additionally, the Bank of England are hosting an event with the ACT on 13 June setting out the background to both the FX Global Code and the UK Money Market Code which was launched in April and which, together, largely replace the NIPs Code. If you are interested in attending this event, click here.

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