PUBLIC UPDATE ON ADHERENCE
The Foreign Exchange Working Group (FXWG) was established by the BIS Governors to strengthen code of conduct standards and principles in foreign exchange markets. The motivation for this work derives from the desire to promote integrity and restore confidence in the wholesale foreign exchange market (FX market) in light of the recent cases of misconduct.
The Global FX Code (Global Code) is intended to become an integral part of the FX market globally, and articulate the good practices with which Market Participants1 and their counterparties are expected to conduct their business. For the Global Code to have the desired effect of promoting a robust, fair, liquid, open, and appropriately transparent FX market, it will need to be embraced and adopted by a wide range of Market Participants across various segments of the market. This will be bolstered if Market Participants are able to recognise benefits from embedding the standards of the Global Code in their business practices and demonstrating to others that they have done so.