Strengthening Principles & Code of Conduct Standards in FX Markets
What is the Global FX Code?
Developments in Foreign Exchange Markets: What is the Global FX Code and what will it aim to achieve within FX Markets?
“The Global Code should serve as an essential reference for Market Participants when conducting business in the wholesale FX Markets and when developing and reviewing internal procedures”
Phase 1: Material for Global FX Code May 2016, FXWG
The Global FX Code aims to establish a single set of common guidelines and principles of good practice for responsible participation in the wholesale FX Market. The Global FX Code is being developed by the Foreign Exchange Working Group (FXWG).
The FX Global Code of Conduct will aim to promote the integrity and effective functioning of foreign exchange markets and it is anticipated that a complete and final global code, along with adherence mechanisms, will be released by the FXWG in May 2017.
In partnership between central banks and market participants from 16 jurisdictions around the world, the Global FX Code is intended to promote a fair, liquid, robust, open and appropriately transparent market. Once established, a wide range of FX Market Participants will be able to effectively and confidently transact at competitive prices based upon a sound and resilient market infrastructure - one that conforms to acceptable market behaviour standards and reflects available market information.
Whilst the Global FX Code will not impose legal or regulatory obligations upon FX Market Participants, it will be seen as intending to provide supplementary guidance on globally identified best practices.
There are six leading principles around which The Global FX Code is based.