BIS Launches Initiative to Implement Consolidated FX Code of Conduct

The Bank for International Settlements (BIS) has implemented a working group with the sole intent of developing a single consolidated global code of conduct for the foreign exchange (FX) market, according to a BIS statement.

The decision to foster a single legal construct or code of conduct in the $5.3 trillion dollar a day industry comes as little surprise following the recent woes that FX markets have faced. These include benchmark manipulation, ongoing fraud warnings from regulators, and the recent market convulsion propagated by the snap Swiss National Bank (SNB) decision earlier this year.

As a result, the BIS has tapped Reserve Bank of Australia Assistant Governor Guy Debelle as head of the newly launched group. Mr. Debelle comes with sterling accolades, having co-authored multiple recommendations last year in a bid to purge the industry of benchmark scandals and alleged manipulation.

According to a recent Reuters report, a number of senior central bank officials were optimistic about the coalescence of disparate codes of conduct, relegated to the FX industry that can be effectively implemented across several different jurisdictions.

Last month, the Reserve Bank of Australia stipulated that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term would need to adhere to Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. As a result, the BIS intervened, replying to a digital currencies enquiry made by the Senate Economics References Committee in Australia.