Central bank governors welcome progress on currency code of conduct
Members of the Economic Consultative Committee (ECC) and the Global Economy Meeting (GEM)1 issued the following statement:
Governors in the ECC and GEM welcome the progress towards a single global code of conduct for the foreign exchange market. This progress is reflected in the first phase of the Global Code released today. This first phase sets out principles for all wholesale foreign exchange market participants in the important areas of ethics, trade execution, information sharing, confirmation and settlement.
We expect market participants will evolve their practices to be consistent with the principles contained in the Global Code in order to promote a robust, fair, liquid, open, and transparent market underpinned by high ethical standards.
Demonstrating our strong commitment to support and promote adherence to the Global Code, central banks intend to adhere to the principles and standards of the Code where they act as market participants themselves. Further, central banks expect that their regular FX trading counterparties will adhere to the Code.
We look forward to the release in May 2017 of the complete Global Code and adherence framework.
1 The Global Economy Meeting (GEM) is the principal discussion forum for central bank Governors during the regular BIS bimonthly meetings. It monitors and assesses developments in the world economy and the global financial system, and provides guidance to, and receives reports from, the Basel-based central bank committees: the Committee on the Global Financial System, the Committee on Payments and Market Infrastructures, and the Markets Committee. The GEM comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that together account for about four fifths of global GDP. Governors from several other central banks attend the GEM as observers. Read more about the GEM.
The Economic Consultative Committee (ECC) supports the Global Economy Meeting. The ECC conducts analyses and prepares proposals for the GEM's consideration and decision. The ECC includes all Governors who participate in BIS Board meetings and the BIS General Manager.