Conference Dailys TRADETech FX Daily 2018 | Página 27

THETRADETECHFX DA I LY
market review
Following years of scandal, the
introduction of the FX Global Code of
Conduct in 2017 aimed to restore the
public’s confidence in FX markets. One
year later, The TRADETech FX Daily
examines whether FX institutions
are choosing to adhere to the Global
Code and finds that compliance
has proved difficult for some.
F
oreign exchange (FX) markets have become
almost synonymous with mistrust in recent
years following a host of rigging scandals
by some of the world’s largest and most influen-
tial financial players. Household names including
Barclays, Deutsche Bank, JP Morgan, Citigroup, UBS
and RBS, among others, have been found guilty of
misdemeanours resulting in billions of dollars’ worth
of fines and traders being slapped with significant
prison sentences.
In 2015, the Bank for International Settlements
(BIS) heralded a new age in FX when it began work
to establish what is now known as the FX Global
Code of Conduct. The Code had a clear objective
of curbing the industry’s alleged, and often proven
misconduct , and restore confidence in the world’s
currency markets.
“The FX industry has been suffering from a lack of
trust,” Guy Debelle, deputy governor of the Reserve
for the Bank of Australia and head of the BIS FX
working group, said shortly following the launch of
the Code. “This lack of trust is evident both between
participants in the market and, at least as important-
ly, between the public and the market. The market
needs to move toward a more favourable and desir-
able location, and allow participants to have