FX market code of conduct needs more asset manager adherents, global official says

30 August 2018 12:54am
Global authorities plan to encourage more money managers to subscribe to a foreign exchange market code of conduct created last year to restore confidence in the wake of the massive rate-manipulation scandal, a Bank for International Settlements official said.

Investment funds account for “only a small number” of the 420 market participants that have made statements of commitment to the voluntary FX global code, said Jacqueline Loh, markets committee chief of Switzerland-based BIS, the group of the world’s central bankers.

The vast majority of these statements have been made by sell-side firms and traders.

“At the global level, there is acknowledgement that more can be done to demonstrate to the buy-side community the benefits of the code, and to articulate more clearly the benefits of adherence,” Loh, who also is deputy managing director of the Monetary Authority of Singapore, told a Singapore audience* Wednesday.

*14th FX Week Asia Conference, Singapore, Aug. 29, 2018.