A global code of conduct for the foreign exchange (FX) markets has been launched today (25 May).
The FX Global Code (Code) establishes a common set of guidelines for good practice in the FX market. FX markets are a vital part of the global financial system, with a turnover of more than $5 trillion a day. A blueprint for achieving widespread adherence to the Code is laid out in a separate report.
The European System of Central Banks has welcomed the publication of the Code and related adherence mechanisms material. A separate statement of support has been issued by governors of the Bank for International Settlements Global Economy Meeting.
The FX Global Code supersedes and substantively updates existing guidance for participants in FX markets provided by the Non-investment Products (NIPs) Code. Guidance on other markets covered by the NIPS Code will be superseded by the UK Money Markets Code and Precious Metals Code (also launched today).
The Code will be maintained and updated by a new Global Foreign Exchange Committee.