The FX Global Code of Conduct remains one of the biggest initiatives in the foreign exchange industry for many years, wide a wide spectrum of different market participants around the world participating in the creation of the principles contained within it.
But given that the Code was introduced to address a specific issue – evidence of malpractice at FX desks in major financial institutions, and in some cases a subsequent loss of trust in these institutions as a result – it is perhaps fair to ask at this point: has anything significant changed as a result of its introduction? Moreover, how should market participants and authorities more broadly benchmark its success?
Meanwhile, over two years on from its full release is probably a good time to start assessing the extent to which market participants have actually committed to the Code and adopted its principles into their business practices. Has awareness and adoption of the Code in Mexico matched other major FX trading hubs? Is there a disparity regarding which types of firms are actually paying attention to the Code?
It’s also worth considering what comes next in terms of the development of the Code itself. Proponents of it were very clear upon its release that they considered it to be a “living document” that would need to be constantly updated in order to stay relevant to an ever-changing FX industry, have the past couple of years highlighted areas of contention or principles in the Code that could already be subject to amendments? Looking ahead, how can market participants further help promote the development and adoption of the Code?
These are some of the tough questions that speakers at the Profit & Loss Latin America conference will address on June 4th. Our panel of senior industry figures discussion this topic includes:
Moderator: Paul Aston, CEO, Tixall Global Advisors
Mayte Rico Fernández, Domestic Operations Division Manager , Banco de México
Gilberto Romero Galindo, Director of Markets , Banco Ve por Más
Chip Lowry, Senior Managing Director , State Street Global Markets; Chairman Emeritus, FXPA