ACI Commits Members to FX Global Code

ACI – The Financial Markets Association has announced it is
mandating its 9,000 members to explicitly commit to the FX Global Code of
Conduct, the complete version of which will be released on May 25.

“In the
three years since the process began to develop a single, global code of conduct
for the FX market, the Foreign Exchange Working Group (FXWG) and Market
Participants Group (MPG) have made enormous strides forward,” says Brigid
Taylor, managing director of ACI. “As a member of the MPG, ACI has both
contributed and witnessed the extent to which market participants and
policymakers have engaged, discussed, debated and worked together in the best
interests of the wider market. 

“As we near
the final stages of the development of the FX Global Code, the focus is
shifting towards commitment to the Code and adhering by its principles,” she
adds. “ACIFMA is the largest trade association for the global foreign exchange
market and is leading efforts to support education and adherence.”

With the adherence function still being finalised by the creators of the
Code,
ACI’s move
represents a public show of support, as well as suggests a method of adherence
for its members.

“It is
essential that individuals (i) commit to adhering to the Code; (ii) receive the
appropriate training and education so they are clear on what is expected and
understand how to comply; and (iii) sign up to a solution where senior managers
are able to observe and address any training and educational gaps amongst their
subordinates,” says Taylor. “There are several ways we intend to achieve this.
Firstly, we will make it a prerequisite for individuals to commit to adhering
to the FX Global Code as part of their membership. This means a meaningful
proportion of the market – over 9,000 FX professionals around the world – will
sign up immediately after the code is launched and commit to understanding,
implementing and abiding by the new principles.

“Secondly,
as part of the ACIFMA’s comprehensive certification process, and previous work
undertaken by our FX Committee and our Committee for Professionalism in
relation to ethical conduct, we will extend our training and certification to
support compliance to the FX Global Code and certify that individuals have
demonstrated an appropriate understanding of its principles and guidelines,”
she adds. “Lastly, our E-Learning, Attestation & Certification (ELAC)
portal will become a central repository for continuous education, training and
adherence to the FX Global Code. This will enable market participants to
understand the practical applications of the Code’s principles and ensure they
are aware of any new updates or additions.”

Sources
familiar with the matter tell Profit
& Loss
that ACI has received “considerable interest” from “a number of
major institutions” regarding ELAC, and that the Association is confident it
can be shaped to provide initial and ongoing training and certification in the
requirements of the Code.  

“The final
Code will, in my view, outline principles and guidance that is effective,
appropriate and strike the right balance,” says Taylor. “I expect it to act as
an essential reference for market participants when conducting business in the
wholesale FX markets and when developing and reviewing internal procedures.

“I expect
the FX Global Code to be a turning point in reforming conduct and behaviour in
foreign exchange and develop a renewed sense of trust in this important sector
of any economy.”

Colin_lambert@profit-loss.com

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@Profit_and_Loss

Colin Lambert

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