Press Release: Global code of conduct sets out good foreign exchange market practice

25 May 2017

A global code of conduct for the wholesale foreign exchange (FX) market was released today in London. The FX Global Code establishes a common set of guidelines for good practice in the FX market, a vital part of the global financial system with turnover of more than $5 trillion a day

The guidelines, developed by the central bank Foreign Exchange Working Group (FXWG) in partnership with a private sector Market Participants Group, aim for a robust, fair, liquid, open, and appropriately transparent global FX marketplace. Their release completes a two-year effort by the FXWG, working under the auspices of the Markets Committee of the Bank for International Settlements. 

The Code contains 55 principles covering areas including ethics, transparency, governance and information sharing. It also tackles complex topics such as electronic trading, algorithmic trading and prime brokerage. 

“All of us recognise the need to restore the public’s faith in the foreign exchange market. We share the view that the Global Code plays an important role in assisting that process and in helping improve market functioning,” said Reserve Bank of Australia Deputy Governor Guy Debelle who chaired the FXWG.

The release was welcomed by central bank Governors from major advanced and emerging market economies and by regional foreign exchange committees. 

A blueprint for achieving widespread adherence to the Code is laid out in a separate report, which outlines mechanisms to encourage market participants to follow the guidelines and ensure that the principles remain up to date. 

“It is now up to each of us to follow through with our commitment to adopt the principles that we have established,” said CLS Chief Executive Officer David Puth, who chaired the Market Participants Group. “I am extremely confident that those who wish to compete in this market will be more successful if they follow the principles that we have established together.”

The Code will be maintained and updated by a new Global Foreign Exchange Committee

Materials related to the launch of the Global Code: