Enter to open, tab to navigate, enter to select
BIS Working Group to Create Global Code of Conduct for FX Market
Practical Law Legal Update 4-612-9325 (Approx. 3 pages)
BIS Working Group to Create Global Code of Conduct for FX Market
by Practical Law Finance
| Published on 13 May 2015 • USA (National/Federal) |
The Bank for International Settlements (BIS) has set up a working group intended to create a single global code of conduct for the foreign exchange market.
On May 11, 2015, the Bank for International Settlements (BIS) announced that it has set up a working group intended to create a single global code of conduct for the foreign exchange (FX) market.
It is intended that the working group will provide initiatives to:
- Facilitate the establishment of uniform global code-of-conduct standards and principles.
- Promote greater adherence to these standards and principles.
- Provide input into the wider official effort on market conduct coordinated by the Financial Stability Board (FSB) (see Legal Update, FSB Requests FX Committees Report on Market Participants' Implementation of Recommendations for FX Benchmark Reforms).
Guy Debelle, the Assistant Governor of the Reserve Bank of Australia and the co-author of recommendations drawn up in 2014 for reforming "fixing" benchmarks after two years of scandal over alleged manipulation, will head the working group. Senior bank officials have expressed their support for unifying the disparate codes of conduct used in different jurisdictions into one central document. According to the bank officials, the need to show that the industry is taking action to prevent future abuses could override traditional disagreements among the biggest banks as well as divisions between market centers such as Tokyo, London and New York.
This Update is based, in part, on material provided by the Accelus service Compliance Complete (http://accelus.thomsonreuters.com/products/accelus-compliance-complete), which provides regulatory news, analysis, rules and developments, with global coverage of more than 400 regulators and exchanges.