The TRADE 56 - Page 67

[ M A R K E T R E V I E W | F O R E I G N E X C H A N G E ] the Code is an extensive, coherent set of guidelines. Officially launched on 25 May 2017 in tandem with wide- spread support from FX market participants and industry bodies, it does not impose a legal or regulatory obligation for compliance. The BIS reiterated that despite this, it expects the principles in the Code to be understood and adopted across the industry, with firms taking practical steps such as training staff and putting in place appropriate policies and procedures to ensure compliance. By April 2018, the Global Foreign Exchange Committee “The FX industry has been (GFXC) announced that more than 100 financial institutions suffering from a lack of trust.” had provided statements of com- GUY DEBELLE, DEPUTY GOVERNOR, RESERVE mitments to the FX Global Code, FOR THE BANK OF AUSTRALIA, AND including investment banks such as Barclays and Deutsche Bank, HEAD OF BIS FX WORKING GROUP both of which have been em- broiled in FX rigging scandals over previous years. Despite 100 firms representing roughly 1% of the FX market, in terms of volume it’s closer to 60%, suggesting the impact could be significant in years to come. Tarnished reputations Various technology vendors, consultancy firms and industry associations have stepped up to the plate since the introduc- tion of the Code to help firms meet its demands, and for some institutions this has clearly been a substantial challenge “When the FX Global Code was first announced the BIS FX Working Group anticipated that it would take firms between six and 12 months to adhere,” says Nick Downes, co-founder of consultancy firm Axiom Global Advisors, which was found- ed with the sole purpose of helping with industry faithfulness Issue 56 // // 67