In July 2015 the Governors of the Bank for International Settlements (BIS) announced the establishment of a Foreign Exchange Working Group (FXWG) which would strengthen code of conduct standards and principles in foreign exchange markets.

The FXWG has announced that the first part of the Global Code of Conduct for the Foreign Exchange Market (the Code) has been completed and that principles for adherence to the new standards have been released. The Code will provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. However, it does not impose legal or regulatory obligations on market participants nor is it a substitute for regulation. Instead it is intended to serve as a supplement to any and all local laws, rules and regulation by identifying global good practices and processes.

The complete Code and the adherence mechanisms will be released in May 2017.

The FCA has issued a press release welcoming the development. In particular it states that it welcomes the recognition that even where a dealer sets out that it is acting as principal, it still has important responsibilities to its clients when using its discretion on their behalf.

View First phase of a global code of conduct for currency markets published, 26 May 2016

View FCA welcomes a significant milestone in the development of standards in FX markets through the publication of the BIS Global FX Code, 26 May 2016