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ESCB welcomes new foreign exchange codes of conduct

Alex Lynn | 10:02 Monday 29th May 2017

The European System of Central Banks (ESCB) has welcomed the publication of the Foreign Exchange Global Code of Conduct.

The initiative aims to promote a robust, fair and transparent foreign exchange (FX) market underpinned by high ethical standards.

In a statement, the ESCB said: “Well-functioning financial markets are important to central banks in ensuring a smooth transmission of monetary policy to the real economy, from which all citizens should ultimately benefit.

“The ESCB central banks are strongly committed to supporting and promoting adherence to the code in their jurisdictions, which together play a key role in the global FX market.

“To that end, they are committed to adhering to the principles of the code when acting as FX market participants and likewise expect their regular FX trading counterparties to adhere to the code.”

The ESCB central banks have now encouraged FX market participants falling under their jurisdictions to evolve their practices to be consistent with the new code.

The organisation also urged these players to endorse a statement of commitment accompanying the code.

“The ESCB central banks look forward to witnessing the evolution of practices accordingly,” the group added.

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