The FX Global Code of Conduct has been warmly met across the industry, having been freshly inked nearly two months ago. Given a groundswell of support from industry peers, CLS Group has signed a statement of commitment to the code, reiterating its outlined principles and transparency measures.
Published in May 2017, the FX Global Code of Conduct by the Bank of International Settlements (BIS) emphasizes the growing need for transparency in the industry execution 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.
CLS’ declaration outlines its acceptance and implementation of the principles in the FX Code itself. Its commitment follows on the heels of many other leading venues across the retail and institutional FX space, many of which have seen the code as a long time coming. The declaration issued by CLS reads as follows:
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“CLS Bank International has reviewed the content of the FX Global Code and acknowledges that the Code represents a set of principles generally recognized as good practice in the wholesale foreign exchange market. The Institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its FX Market activities in a manner consistent with the principles of the Code. To this end, the Institution has taken 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.”
Public register erected
CLS has also taken additional steps in backing the FX Global Code with a public register. This includes a register that is made available on the CLS website that is exclusive to settlement members. It will include signed copies of members’ FX Global Code Statements of Commitment.
It comes as no surprise that CLS has backed the code, given the role played in its formation by the group’s CEO David Puth, who has served as the Chairman of the Market Participants Group.
He echoed this sentiment, stating: “The FX Global Code is a common set of principles for good practice in the foreign exchange market. As one of the largest risk mitigation providers in the FX market, serving over 60 banks and 23,000 third-party entities globally, CLS is committed to implementing the principles of the code and leading by example on ethical behavior and best practice.”
Of note, the European Central Bank (ECB) issued a blanket call for backing the FX Global Code, which was made mandatory for all currency pairs trading banks with which it collaborates. The traction the code has received has been quite large, and continues to grow just two months after its initial approval and passage.