Why, you might ask, is there an FX Global Code? “There is a need for it” is the simple answer, says Mick Ankjaer. As Nordea’s representative in the European Central Bank FX Contact Group Ankjaer knows better than most why it matters. The FX Global Code acts as a supplement to any and all local regulation, and Nordea will commit to adopting the code.
“Given our leading role in the Nordic FX market, we are committed to, and have supported the development,” says Ankjaer. “It is vital for us that we keep developing the FX market, but keep the highest ethical standards when doing so.”
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The FX Global Code
The FX global code was launched on May 25, 2017, and the expectation is that over the next 12 months, all participants in the FX market adopt the principles. “Being active in the development of principles under the FX Global Code is one thing, but early out of the gates to committing to it, sends a strong message to our customers and the participants in the FX Market,” Ankjaer says.
The six leading principles of the FX Global Code
Market participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
Market participants are expected to have a sound and effective governance framework to provide for clear responsibility for and comprehensive oversight of their FX market activity and to promote responsible engagement in the FX market.
Market participants are expected to exercise care when negotiating and executing transactions in order to promote a robust, fair, open, liquid, and appropriately transparent FX market.
Market participants are expected to be clear and accurate in their communications and to protect confidential information to promote effective communication that supports a robust, fair, open, liquid, and appropriately transparent FX market.
Risk management and compliance
Market participants are expected to promote and maintain a robust control and compliance environment to effectively identify, manage, and report on the risks associated with their engagement in the FX market.
Confirmation and settlement processes
Market participants are expected to put in place robust, efficient, transparent, and risk-mitigating post-trade processes to promote the predictable, smooth, and timely settlement of transactions in the FX market. The Global Code will be periodically reviewed and is expected to evolve over time in a similarly collaborative manner.
1. Nordea Bank AB Statement of Committment
2. FX Global Code
3. Reuters News
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