The Bank for International Settlements (BIS) has signed a statement of commitment to the FX Global Code of Conduct, 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 and governance.
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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.”