Central banks of five countries, including India and Australia, today welcomed publication of the FX Global Code, a single global code of conduct for the wholesale foreign exchange market.
The code was launched after it was endorsed at the Global Foreign Exchange Committee meeting in London on May 24.
The Bank of Korea (BOK), the Hong Kong Monetary Authority (HKMA), the Monetary Authority of Singapore (MAS), the Reserve Bank of Australia (RBA) and the Reserve Bank of India (RBI) have welcomed the publication of the Code.
"Given the increasing volume of forex activity taking place in Asia, they encourage all market participants based in their jurisdictions to adhere to the principles of the Code," the five banks said in a joint statement.
The Code is developed through a collaborative process between the Bank for International Settlements' (BIS) Foreign Exchange Working Group and private market participants.
The Code sets out principles that promote a robust, fair, liquid, open and appropriately transparent market, underpinned by high ethical standards. It is voluntary and applies to wholesale forex market participants.
The statement said BOK, HKMA, MAS, RBA, RBI strongly support the principles of good practices within the Code and will be engaging local market participants to promote adherence to the Code.
"Market participants are also encouraged to demonstrate their commitment to adhere to the Code through the Statement of Commitment, which is published as part of the Code," it added.
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