Tag: Code of Conduct

Code of Conduct

Bank of England Releases Money Market Code of Conduct

The financial markets industry has another code of conduct to confirm with after the Bank of England released its new, voluntary, UK Money Markets Code, which sets out the standards and best practice expected from participants in the deposit, repo and securities lending markets.
The Code is underpinned by the key principle that participants should always act in a manner to promote the integrity and effective functioning of these markets. It also outlines six high-level principles encompassing: ethics, governance, risk management, confidentiality, execution and settlement.

XTX Hands Buy Side New Liquidity Analysis Tool

XTX Markets has made XTX-ray, a tool designed to replicate how sell-side market makers analyse spot FX liquidity, available to buy side market participants.

XTX-ray looks at a wide range of data, including fill ratios, the cost of rejected trades in USD, spreads and market impact, to reveal “hidden” costs embedded in firms’ spot FX execution with the aim of enabling them to more effectively analyse the liquidity they are accessing.

“XTX-ray makes state-of-the-art sell side execution analysis available to buy side firms, and counterparties will be able to evaluate the execution quality of their liquidity providers.

The 2017 Profit & Loss Crystal Ball

Colin Lambert has retrieved the trusty Profit & Loss Crystal Ball from the dark recesses of the office, given it a wipe, and peered into the future to produce 10 predictions for 2017.

There is little doubt that as an industry foreign exchange is a more optimistic place than it was just 12 months ago – and hopefully the majority of themes in this year’s Crystal Ball reflect a more upbeat message.

es, the coming year will not be without the challenges of legal battles that have dogged the industry for the past three years, but if nothing else the shock factor has worn off and most people see what is happening as the continuation of a long process.

2016 Crystal Ball: How Did We Do Last Year?

In the interests of total transparency we also, as usual, cast our eye over last year’s predictions to see how they went. As always, these predictions will be viewed through rose-coloured spectacles to ensure we look as good as possible!

We kicked off last year’s predictions by suggesting the entire FX world would take a more realistic view of developments – that liquidity and spreads would reflect this thought process, and that market share would be a declining influence in business decisions.

Malaysia to Launch Code of Conduct for FX and Money Markets

Bank Negara Malaysia is issuing a policy document on a proposed Code of Conduct for Malaysian wholesale financial markets “to uphold professionalism and integrity in the financial markets”.
The draft sets out principles and standards to be observed by market participants in the Malaysian wholesale financial markets, including FX and money markets. It also outlines the administrative, civil and criminal actions that may be undertaken by Bank Negara on misconduct
Market participants are invited to provide written feedback on the draft, including suggestions on areas requiring further clarity and alternative proposals that Bank Negara should consider, ahead of a proposed release early in 2017.

And Another Thing…

Nothing says “tick box society” to me more than the world’s obsession with data and being able to quantify, and therefore justify, everything. We have finally reached the point where we have stopped doing the right thing by people because it may leave a couple of boxes un-ticked. There is a lot of attention paid to righting the industry’s wrongs but too little attention is paid, in my view, to the psychological impact of reform. The FX industry has psychological scars that need healing.

FX Code of Conduct: Reasons for Optimism

What is widely seen as one of, if not the, biggest challenge surrounding the BIS FX Working Group’s work on developing the Global Code of Conduct – adherence – was addressed by Chris Salmon, executive director, Markets at the Bank of England earlier this week and Salmon – the man responsible for the adherence piece in the Code – was optimistic that it would be effective.
Addressing ACI UK’s Square Mile Debate, Salmon noted, “It is no secret that all has not been well in FX or FICC markets more generally.”
He cited the erosion of trust in markets to preface his speech but identified an “ethical drift” resulting from “structural weaknesses” that presented opportunities for misconduct.

Debelle Appointed Deputy Governor of RBA

The man responsible for guiding the new foreign exchange markets’ Global Code of Conduct, Guy Debelle, has been named as deputy governor of the Reserve Bank of Australia as part of the changes taking place as current governor Glenn Stevens steps down in favour of new incumbent Philip Lowe. Lowe was named as the new governor in May and has welcomed Debelle’s appointment as he steps up from assistant governor (markets), where part of his work was heading the BIS FX Working Group

LMAX Exchange Survey Doubts Impact of Global Code: Firm Calls for UK Leadership

In a release to accompany a new survey taken by the firm, LMAX Exchange casts doubt on the ability of the FX Global Code of Conduct to deliver industry reform in a timely fashion. While noting that the first release of the Code is “full of sound ideas and appropriate sentiments” and that “the principles […]