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RBNZ and FMA welcome new foreign exchange market Global Code of Conduct

Media release
MR No. 2017 – 21
26 May 2017

The Reserve Bank of New Zealand and Financial Markets Authority have welcomed the release of a new code to promote good practice in the international foreign exchange market.

The new Global Code of Conduct for the Foreign Exchange Market was released in London by the Bank for International Settlements last night. It was developed by central banks and foreign exchange market participants from 16 international jurisdictions.

“The code of conduct applies to both those buying and selling foreign exchange and is a principles-based code rather than a rules-based code,” said Reserve Bank Deputy Governor Grant Spencer.

“It aims to create greater confidence in the foreign exchange market and ensure it is functioning as it should; something that is in the interests of all market participants.”

To comply with the code, firms will have to take practical steps such as training their staff and putting in place enhanced policies and procedures.

Garth Stanish, FMA Director of Capital Markets, encouraged industry participants to adopt the code.

“The code is relevant to all parts of the wholesale FX industry that fall within the FMA’s conduct regulation. We support its objectives, which include the promotion of a robust, fair, liquid, open, and appropriately transparent foreign exchange market.”

The Global Code of Conduct for the Foreign Exchange Market can be found here

Ends

Contact:
Edwin Mitson
Ph: 021 702 036
Edwin.Mitson@fma.govt.nz