The behaviour of FX Market Participants is expected to be both ethical and professional. It will be this behaviour that will underpin the fairness and integrity of the FX Market.
These ethics principles are seen as fundamental to all aspects of a Market Participant's behaviour and therefore core to nearly all of the principles that follow thereafter.
That having been said, the FXWG envisage that it will not be possible for The Global Code to be comprehensive guide to doing business, and as such the set of principles on ethics will not be able to cover all scenarios or questions of conduct exhaustively. However, the FXWG advises that “applying judgement is fundamental to acting ethically and professionally” and therefore FX Market Participants and their staff should be guided by the following high-level principles when applying the guidance contained within the FX Global Code and at all times when taking part in the Foreign Exchange Market.
Market Participants should strive for the highest ethical standards;
Market Participants should strive for the highest professional standards; and
Market Participants should identify and address conflicts of interest;
Examples of High Standards:
Some such examples of expected High Standards and identification of Conflicts of interest include:
Acting honestly, fairly and with integrity in dealings with Clients and other Participants within the FX Market;
Dealing in a consistent and appropriately transparent manner and avoiding and confronting questionable practices and behaviours;
Market Participants should Staff that are appropriately trained and experienced to undertake with duties in a professional manner;
Those that actively participate should have sufficient technical knowledge, relevant experience, and qualifications as well as acting in compliance with any Applicable Law with competence and skill;
Market Participants should identify and eliminate both actual and potential conflicts of interest that might compromise their ethical or professional judgement.
Such conflicts of interest might arise due to Personal Dealing, Gifts & Corporate Entertaining, Personal Relationships or through circumstances where the interest of the firm or staff may conflict with those of a Client or other FX Market Participant.