A voluntary code of conduct for the global foreign exchange markets, the FX Global Code, was released yesterday, with the aim of raising standards and promoting fairness and efficiency in currency markets.
The voluntary code is an initiative that has been two years in the making, created by central banks and private sector market participants from across the world. It contains six main principles, from ethics to risk management and execution, which CTMfile covered in this article: What is the FX Global Code and how will it affect treasury?
Towards robust, fair, liquid, open and transparent FX?
Reaction from market players has been positive:
- Agustín Carstens, governor of the Bank of Mexico and chair of the Global Economy Meeting, said: “The FX Global Code sets good practices for market participants to follow and will support a robust, fair and transparent market, underpinned by high ethical standards.”
- While SWIFT's Stephen Lindsay said: “SWIFT welcomes and strongly supports the launch of the FX Global Code as we believe it will strengthen the integrity and effectiveness of the wholesale foreign exchange market.”
- The European Central Bank also said in a statement: “This is a significant global initiative to promote a robust, fair, liquid, open and transparent foreign exchange (FX) market underpinned by high ethical standards which benefits all wholesale FX market participants.”
CTMfile take: This is certainly good news for corporates accessing FX markets.
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