New global code of conduct for foreign exchange market

News Central banks and private actors around the world have collaborated to produce a global standard for the foreign exchange market, the FX Global Code of Conduct. The Riksbank is one of many participants in the foreign exchange market that have chosen to follow the principles of the Code.

The Code is based on six leading principles: ethics, governance, information sharing, execution, risk management and compliance, and confirmation and settlement processes. Market participants can voluntarily undertake to observe the Code of Conduct to show good practice.

"Committing to the Global Code is a good way of showing that one applies good principles, has orderly conduct in business and acts fairly towards other FX market participants," says Stefan Ingves.

To show its intention to observe the Code, the Riksbank will sign the Statement of Commitment annexed to the Code by the end of November 2017. The Riksbank also encourages all participants in the Swedish FX market to follow the Code of Conduct. To demonstrate their commitment, the Riksbank expects the counterparties with which it has foreign exchange transactions to sign the Statement of Commitment within 12 months of the launch of the Code.

The Riksbank also intends to participate in the Global FX Committee responsible for maintaining the Code. This committee will provide a global forum for discussing the functioning of the foreign exchange market, which also includes the Scandinavian currencies.

Contact: Presstjänsten 08-787 02 00
Updated 17/01/2018