Tag: Code of Conduct

Code of Conduct

10 Firms Join to Create Code of Conduct for Digital Asset Markets

Ten financial services and technology firms leading developments in the digital asset and blockchain space have joined together to create the Association for Digital Asset Markets (ADAM) to establish a Code of Conduct for emerging digital asset markets.

US-based ADAM will proactively seek comprehensive standards for digital asset market participants. The group, which includes BitOoda, BTIG, Cumberland, Galaxy Digital, Genesis Global Trading, GSR, Hudson River Trading, Paxos, Symbiont and XBTO, says it will work with current and former regulators to provide rules for the efficient trading, custody, clearing and settlement of digital assets.

Future guidelines will encourage professionalism and ethical conduct by all market participants, increase transparency by providing information to regulators and the public, and deter market manipulation, the group stated.

Is the Global Code of Conduct in Trouble Already?

The opening panel discussion of this year’s Profit & Loss Forex Network Chicago conference featured an unusually frank and honest discussion about the challenges associated with implementing the FX Global Code of Conduct. 

I t has been well documented that buy side firms have been much slower than their sell side counterparts to commit to the Global Code, with one panellist at Profit & Loss Forex Network Chicago highlighting that of the 452 entities that have signed the statement of commitment only 23 were asset managers. Indeed, they noted that of the asset managers that have signed the Code, the majority trade currency as their primary business, or even as their sole focus.

And Another Thing…

In this week’s In the FICC of It podcast I mention how I like my hedge funds to be a bit “crazy” and my colleague and fellow podcaster, Galen Stops, suggests if I want to live on the edge then I should look at crypto funds. He’s right. If ever there was a crazy world, it’s crypto-land and this week highlighted this with some fantastic instances of “dolly out of the pram” tantrums! Generally speaking, when regulators talk, markets listen – not in crypto apparently, there they poke the bear!

The Buy Side and the Global Code: Patience Required

Much has been made of the low buy side sign up to the FX Global Code, but as Colin Lambert finds out, it is likely only to be a matter of time.

Talk to senior members of the Global FX Committee and one can discern a sense of exasperation when they are asked (probably for the tenth time that day) about the lack of buy side adoption of the FX Global Code. The exasperation stems from what is the thorn in the side of the GFXC that is low adoption rates.

In the FICC of it

In the latest edition of Profit & Loss’ podcast series, In the FICC of It, managing editor Colin Lambert and editor Galen Stops discuss some of the news stories that have hit the headlines over the past week. They discuss the surprising departure of Fastmatch CEO Dmitri Galinov, the drivers of latest deal in the FX trading platform world and the challenges and opportunities facing the CTA industry. They close out with a few quick thoughts on the first anniversary of the FX Global Code and as you would expect, they are “off message”!

Thomson Reuters’ Penney to Join GFXC

Neill Penney, co-head of Trading at Thomson Reuters, will serve as the London Foreign Exchange Joint Standing Committee’s (FXJSC) private sector representative on the Global Foreign Exchange Committee (GFXC). 

The FX Global Code was launched in May 2017 to promote integrity, fairness, transparency and effective functioning of the global foreign exchange markets. Alongside the launch of the Code, the GFXC was established to promote and maintain the Code and to facilitate communication between local foreign exchange committees around the world, each of which appoints two members to the GFXC, one from the private sector and one from the public sector.

Puth’s Term with GFXC Comes to a Close in June

David Puth, Vice Chair of the Global FX Committee (GFXC), will be completing his term in this role with the group he helped form next month.

Puth, who is the CEO of CLS Group, has been heavily involved in the creation of the Global Code, the first iteration of which was released in May 2016, and then published in its final form in May 2017. Firms were anticipated to commit adherence by around the one-year anniversary in May.

When work on the Global Code first began, it was in the form of a public/private sector partnership, with Puth leading the private sector side through the Market Participants Group (MPG), which worked together, but separately, with the public sector side, led by the Reserve Bank of Australia’s Deputy Governor Guy Debelle.

Will the FX Global Code Gain Traction in Mexico?

A new survey from Bloomberg suggests that authorities in Mexico may face an uphill struggle when promoting the FX Global Code of Conduct amongst the local market.

In the survey, which Bloomberg says more than 100 financial professionals in Mexico participated in, 39% of respondents said that they will not endorse the Code. This is in comparison to 40% who said that they are reviewing the Code, 8% who said they have signed the letter of commitment to the Code’s principles and 12% that said they have implemented Code training. 

“What the survey results tell us is that many people still do not understand what the FX Global Code of Conduct is and does,” said Mariana Suarez, Bloomberg’s Head of Sales for Mexico and Central America.

Record Signs Codes of Conduct

Record Currency Management has signed both the FX Global Code and the Local Government Pension Schemes (LGPS) Investment Code of Transparency.

“Both of these codes are fully aligned with Record’s position as an independent currency manager, acting solely on our clients’ behalf, and promoting the highest standards of transparency and market conduct,” says the firm in a release issued today.

The FX Global Code is a set of principles of good practice in the foreign exchange market that has been developed in partnership between central banks and market participants.

P&L Talk Series with Ian Battye

Ian Battye, chief investment officer, currency, at Russell Investments, talks to Profit & Loss about the next steps for driving the adoption of the Global Code of Conduct within the FX industry. 

Profit & Loss: The FX Global Code of Conduct has obviously been a big initiative within the industry, but how much do your clients – the asset owners – know about it? 

Ian Battye: Perhaps a little disappointingly there isn’t a great knowledge of even its existence amongst asset owners. That’s why at the moment we’re trying to help create a level of awareness around the Code by explaining why we have signed up to it.