Bank for International Settlements Commits to FX Global Code of Conduct

The Bank for International Settlements (BIS) has signed a statement of commitment to the FX Global Code of Conduct FX Global Code of Conduct The FX Global Code of Conduct outlines an accepted set of global principles of good practice in the forex market. Published in August 2018, the Code helped develop a common set of guidelines to foster the integrity and effective functioning of the wholesale forex market.The effort spanned multiple years and was developed by a partnership between both central banks and market participants across 16 global jurisdictions.Why the FX Global Code of Conduct is a Global Collaboration In particular, the The FX Global Code of Conduct outlines an accepted set of global principles of good practice in the forex market. Published in August 2018, the Code helped develop a common set of guidelines to foster the integrity and effective functioning of the wholesale forex market.The effort spanned multiple years and was developed by a partnership between both central banks and market participants across 16 global jurisdictions.Why the FX Global Code of Conduct is a Global Collaboration In particular, the Read this Term, which was developed by a partnership between central banks and market participants to enhance discipline in the foreign exchange market.

Basel-based BIS, owned by around 60 central banks, joins a number of early adopters who have pledged to adhere to the code’s principles, which are expected to reform conduct and behavior in foreign exchange and develop a renewed sense of trust in the sector.

The FX Global Code consists of 55 principles of good practices that will function as a guide to ethical behavior in the FX market. Published in May 2017, the initiative emphasizes the growing need for transparency in the industry Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and governance.

After lengthy industry collaboration and planning, the document will help foster more robust, fair, liquid, open, and appropriately transparent marketplaces, where different market participants are actively supported by a resilient infrastructure.

Headquartered in Switzerland, the Bank for International Settlements (BIS) is a gathering place for the world’s central bankers, and its board includes top officials from the Federal Reserve, the BoE, and the ECB, among others.

By signing a statement of commitment, the BIS acknowledges that the principles outlined in the Code represent a series of best practices to promote a transparent FX market.

The official statement further reads: “The Institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its FX Market activities (“Activities”) in a manner consistent with the principles of the Code. To this end, the Institution has taken appropriate steps, based on the size and complexity of its Activities, and the nature of its engagement in the FX Market, to align its Activities with the principles of the Code."