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Strengthening Principles & Code of Conduct Standards in FX Markets
The Global Code of Conduct for the Foreign Exchange Market is written to encompass all those that participate within the FX Market.
“The Global Code will evolve, as required, over time as the FX Market evolves”
Phase 1: Material for Global FX Code May 2016, FXWG
With the Foreign Exchange Market being made up of such a diverse range of Market Participants, the FXWG are aiming to write the FX Global Code to take into account the different types of engagement within the Market and the variety of foreign exchange products that are available.
The Global Code is therefore expected to apply to all Market Participants that engage in the Foreign Exchange Market.
This will include both buy-side and sell-side entities, Trading Venue operators, non-bank liquidity providers and other service providers such as those that offer brokerage, execution and settlement services.
However, the FXWG seem to understand that “there can be no universal ‘one-size fits all’ approach”, however they see the Global Code as being intended to establish a common set of guidelines for responsible participation within the FX Market.
Market Participants will be both persons and organisations of any legal form that either:
*The Global Code is still to be finalised and thus the relevance and applicability to FX futures is still be evaluated.
According to the FXWG, thus the types of entities that would generally be expected to participate in foreign exchange activities - thus be FX Market Participants - might be as follows:
However, the FXWG, (according to their May16 initial Global Code publication) do not anticipate that the following persons would be expected to engage as FX Market Participants, and thus not be affected:
The FCA addresses how firms should respond to their findings on the FX Remediation Programme and the next steps for the Foreign Exchange Market Sector.
|Principles of the FX Global Code|
|Who will the FX Global Code apply to?|
|Risk Management & Compliance|
|Confirmation & Settlement|
|Members of the FXWG|
|FCA FX Remediation Programme: Next Steps|
|The Global Code: First Phase|
|Foreign Exchange Working Group Established|