FX Global Code—Global Principles of Good Practice in the Foreign Exchange Market: The Foreign Exchange Working Group and Market Participants Group Publish the FX Global Code to Provide Guidance on Global Principles of Good Practice in the Foreign Exchange Market

Sullivan & Cromwell LLP - June 20, 2017

In May 2015, the Bank of International Settlements (BIS) Governors announced the formation of a Foreign Exchange Working Group, comprised of public and private sector representatives from sixteen foreign exchange (“FX”) trading center jurisdictions, to facilitate the establishment of a single global code of conduct standards and principles in FX markets. On May 25, 2017, the Foreign Exchange Working Group announced the release of the final version of the FX Global Code (the “Code”), which will be maintained in the future by the newly formed Global Foreign Exchange Committee (the “GFXC”). The Code represents a set of global principles of good practice for participants in the FX market.  Voluntary in nature, the Code provides guidelines to promote the integrity and effective functioning of the wholesale FX markets, and has been described as an effort by regulators and market participants to restore trust and confidence in the FX markets.