Basel-based Bank for International Settlements (BIS) has published its FX Global Code, a set of global principles promoting good practice in the foreign exchange (FX) market.
Several central banks and market participants have worked on the development of the code whose primary objective is to introduce “integrity and effective functioning”.
Many financial institutions and organizations hailed the initiative, such as Swift and the UK’s Financial Conduct Authority.
Nevertheless, the document revolves around six leading principles as ethical behavior, responsible and engaging governance, caring execution in transactions, information sharing, risk management and compliance, confirmation and settlement processes.
The bank says its code is expected to be adopted across the entire FX market, including the sell-side, buy-side, non-bank participants and platforms.
Furthermore, the BIS has provided a draft statement of commitment for firms to publicly demonstrate their adherence to the code as it is “believed that firms are more likely to adhere to it if their peers are doing so too”.
Read more at Banking Technology.