- Category: FX Derivatives
- Published: Friday, 03 April 2015 21:46
- Written by skyapex
- Hits: 426
On March 30, 2015, representatives from the foreign exchange committees of central banks in several major global jurisdictions, including the Federal Reserve Bank of New York, the Bank of Japan and the Bank of England, established new market conduct guidelines for the global forex markets. These new guidelines, Codes of Best Market Practice and Shared Global Principles, emphasize a duty of FX market participants to act with care, diligence and good faith in an effort to create a more tamper-resistant market structure.
In an effort to rein in abuse of FX futures after rampant market manipulation was revealed last year, the new code of conduct:
Bans traditional slang usages and code names that have been used to identify clients without naming them.
Bans traders from sharing client identities and information and disclosing data that could allow someone to deduce that information.
Establishes the responsibility of banks to implement policies controlling communication between traders.