The FX Global Code
The FX Global Code, a global code of conduct laying down principles for good practice in the foreign exchange market, was issued last year. The Code is the result of collaboration between two groups in cooperation with the Markets Committee of the Bank for International Settlements in Basel. Leading central banks all over the world participated in the preparation of the Code, as did a group of private sector market participants. Among the topics covered by the Code are ethics, transparency, governance and information sharing, as well as risk management and settlement options. There is broad-based international consensus on the substance of the Code, which is considered an important element in enhancing public faith in the foreign exchange markets. A large number of central banks have declared their commitment to complying with the Code in their foreign exchange market activities. Many financial institutions have done the same.
Foreign exchange transactions in the spirit of the FX Global Code
The Central Bank of Iceland has acquainted itself with the Code and the principles it lays down concerning foreign exchange transactions. It has taken steps to ensure compliance with the Code and has signed a statement of commitment to this effect.
The Bank considers it important that participants in the domestic foreign exchange market adopt the Code and, to this end, has encouraged its counterparties in the market to familiarise themselves with the Code and, as applicable, take the steps necessary to comply with it.
The press release from the Global Foreign Exchange Committee can be found here.
Further information can be obtained from Sturla Palsson, director for Treasury and Market Operations, Central Bank of Iceland, tel.: 569 9600.
Press release no. 16/2018,
9 November 2018.