[ 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 ]
Faulkner says.
For FX technology vendors and industry associations,
the Code has also brought about new opportunities as
firms seek efficient ways to not just comply with the rules
but also monitor their compliance. Over the past year ACI
The Financial Markets Association has worked to develop
a testing system which enables firms to educate and test
their staff on compliance with the Code. Known as the
E-Learning, Attestation and Certification (ELAC) online
portal, ACI offers the FX industry standardised training for
compliance with the 55 principles.
“We have seen a great deal of interest from institutions
which need to monitor, measure and maintain adherence
to the FX Global Code and other Codes.
equal importance is their need to
“Millennium Global recently Of
demonstrate Code adherence to their
adopted ELAC, becoming
regulators and clients,” Paul Chappell,
ACI director of education, explains.
one of the first major buy-
“Millennium Global recently adopted
side firms to do so, to assist ELAC, becoming one of the first major
in adhering to the principles buy-side firms to do so, to assist in
adhering to the principles of the Global
of the Global Code.”
Code. ELAC provides them with an
PAUL CHAPPELL, ACI DIRECTOR accredited and continuous professional
development solution.”
OF EDUCATION
The FX Global Code of Conduct is
wide-ranging and compliance requires
substantial time and resources. The size and complexity
of the FX market adds further complication to this with
various factors like regulation, risk management, coun-
terparties, liquidity, technology and market infrastructure
constantly evolving.
FX experts agree that institutions have recognised that
compliance with the Code is not a ‘one-stop process’, but
an on-going procedure that needs to be constantly moni-
tored, in much the same way as compliance with manda-
tory regulatory regimes are. Despite the difficulty, the FX
landscape will herald a new age of transparency in terms of
order and algo execution thanks to the introduction of the
Code, but one year on, it’s clear there is still a long way to
go until the benefits of the Code can be truly realised and
the shame of historic misconduct can be laid to rest.
70 // TheTrade // Summer 2018