[ M A R K E T
R E V I E W
|
F O R E I G N
E X C H A N G E ]
the Code is an extensive, coherent set of guidelines.
Officially launched on 25 May 2017 in tandem with wide-
spread support from FX market participants and industry
bodies, it does not impose a legal or regulatory obligation for
compliance. The BIS reiterated that despite this, it expects the
principles in the Code to be understood and adopted across
the industry, with firms taking practical steps such as training
staff and putting in place appropriate policies and procedures
to ensure compliance.
By April 2018, the Global
Foreign Exchange Committee
“The FX industry has been
(GFXC) announced that more
than 100 financial institutions
suffering from a lack of trust.”
had provided statements of com-
GUY DEBELLE, DEPUTY GOVERNOR, RESERVE
mitments to the FX Global Code,
FOR THE BANK OF AUSTRALIA, AND
including investment banks such
as Barclays and Deutsche Bank,
HEAD OF BIS FX WORKING GROUP
both of which have been em-
broiled in FX rigging scandals
over previous years. Despite 100 firms representing roughly
1% of the FX market, in terms of volume it’s closer to 60%,
suggesting the impact could be significant in years to come.
Tarnished reputations
Various technology vendors, consultancy firms and industry
associations have stepped up to the plate since the introduc-
tion of the Code to help firms meet its demands, and for some
institutions this has clearly been a substantial challenge
“When the FX Global Code was first announced the BIS FX
Working Group anticipated that it would take firms between
six and 12 months to adhere,” says Nick Downes, co-founder
of consultancy firm Axiom Global Advisors, which was found-
ed with the sole purpose of helping with industry faithfulness
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