The European Central Bank (ECB) is publicly endorsing the statement of Commitment set out in the FX Global Code of Conduct and is encouraging FX trading counterparties to do the same.
The FX Global Code is a set of global principles of good practice in foreign exchange markets, developed by central banks and market participants from 16 jurisdictions around the globe in order to promote a robust, fair, liquid, open and appropriately transparent market.
Today the ECB invited FX market participants to publicly commit to the principles set out in the Code by endorsing the statement of commitment annexed to the Code by the end of May 2018.
“Counterparties are also encouraged to reaffirm their commitment to those principles after any substantial future update of the FX Global Code,” says the ECB in the statement.
The ECB, which today has reaffirmed its own intention to commit to the Code when participating in the FX market, has also decided to make membership of its Foreign Exchange Contact Group (FXCG) contingent on adherence to those principles.
FXCG members will be required to demonstrate their institutions’ commitment to the Code, in line with the FXCG’s updated terms of reference.
Profit & Loss has reported extensively on the FX Global Code of Conduct, with the latest edition of the magazine featuring a number of in-depth reports on its potential impact on the industry:
May 25 marks the release of the full FX Global Code of Conduct, an event that has been much anticipated in FX circles. What will the Code bring to the FX industry and what are the key changes likely to be experienced by participants?
Profit & Loss talks to David Puth, CEO of CLS and Chairman of the Market Participants Group (MPG), about how the FX Global Code of Conduct will work.
There is one area of the Global Code of Conduct that continues to attract controversy, and, Colin Lambert says, we all know what it is…
Although most of the attention is on institutional adherence to the Code of Conduct, Colin Lambert suggests there is also a great deal that individual employees need to know.
Galen Stops looks at how chat room activity is being monitored and controlled following recent collusion scandals.
Despite two years of intensive work to produce the FX Global Code of Conduct, Chip Lowry, senior managing director at State Street Global Markets and chairman of the Foreign Exchange Professionals Association (FXPA), warns that the hard work in terms of adherence to the Code is just beginning.
Lots of people are talking about the Global Code of Conduct, but are they asking the right questions? Profit & Loss deputy editor, Galen Stops, discusses why incentives might be more important that enforcement mechanisms when it comes to ensuring adherence to the Code.
On the day that the second and final phase of the FX Global Code of Conduct was released, panellists at Forex Network New York debated whether it puts an unnecessary burden on buy side firms.