The TRADE 56 - Page 66

[ M A R K E T R E V I E W F | F O R E I G N E X C H A N G E ] oreign exchange (FX) markets have become almost synonymous with mistrust in recent years following a host of rigging scandals by some of the world’s largest and most influential financial players. Household names including Barclays, Deutsche Bank, JP Morgan, Citigroup, UBS and RBS, among others, have been found guilty of misde- “A lot of firms realise that meanours resulting in billions of dollars’ adherence with the Code is worth of fines and traders being slapped difficult to achieve and it with significant prison sentences. In 2015, the Bank for International touches multiple parts of their Settlements (BIS) heralded a new age in FX when it began work to establish what businesses.” is now known as the FX Global Code of NICK DOWNES, CO-FOUNDER, Conduct. The Code had a clear objective AXIOM GLOBAL ADVISORS of curbing the industry’s alleged, and often proven misconduct , and restore confidence in the world’s currency markets. “The FX industry has been suffering from a lack of trust,” Guy Debelle, deputy governor of the Reserve for the Bank of Australia and head of the BIS FX working group, said shortly following the launch of the Code. “This lack of trust is evident both between participants in the market and, at least as importantly, between the public and the market. The market needs to move toward a more favourable and desirable loca- tion, and allow participants to have much greater confidence that the market is functioning appropriately.” With 55 principles addressing a variety of major issues including ethics, governance, execution, information sharing, risk management, compliance, confirmation and settlement, 66 // TheTrade // Summer 2018