IGTA Journal - Summer 2018

Jacqueline Loh: The FX Global Code – one year on Keynote address by Ms Jacqueline Loh, Deputy Managing Director of the Monetary Authority of Singapore, at the 14th FXWeek Asia Conference, Singapore, 29 August 2018. * * * Ms Eva Szalay, Editor, FXWeek, 1 Ladies and gentlemen, good morning. How time flies. It did not seem too long ago when I was invited to speak at last year’s conference and I am very happy to be here again at the 14th FX Week Asia Conference. 2 Last year, I shared the launch of the FX Global Code (or the Code), its unique features and the elements that have been put in place to promote industry adherence. One year has passed, and it is timely to review developments since the launch of the Code and its impact on the global FX industry. More importantly, I would like to share with you, the priorities ahead to further embed the Code within the global FXmarket. FX Global Code: Overview 3 I am sure that by now, most of you would have heard of the Code. But for the benefit of those who may not have, let me provide a quick overview. 4 The Code was launched in May last year by the Bank for International Settlements (or BIS) as a single, global code of conduct for the wholesale FXmarket. It was developed over 2 years through a public-private partnership between central banks and key FXmarket participants. The Code’s content reflects good practices where clarity is needed, and applies to all wholesale market participants, including sell-side, buy-side, trading platforms and other market infrastructure. The Code incorporates the principle of proportionality, given the diverse nature of market participants. The Code is now owned and maintained by the local Foreign Exchange Committees (or FXCs), through the Global Foreign Exchange Committee (or the GFXC). The GFXC is chaired by Mr Simon Potter, Executive Vice President of the Federal Reserve Bank of New York, and has two newly appointed Co-Vice Chairs from the private sector – Mr Adrian Boehler, Global Co-Head of FX Local Markets & Commodity Derivatives at BNP Paribas, and Mr Akira Hoshino, Managing Director and Head of Global Markets Trading at MUFG Bank. FX Global Code: ALook Back 5 Since the launch of the Code, we have been fully committed to promoting adherence in our respective markets by market participants, from both sell- and buy-sides, to the Code. One year on, the GFXC has done a “stock-take” of our achievements, and I will share some of these with you today. 6 First, on awareness and commitment to the Code. On this front, the GFXC, together with the FXCs in each jurisdiction, has made good progress. A key part of the Code is the Statement of Commitment. This is a single, common basis by which each market participant can demonstrate that it commits to adhere to the Code. One year on, we have seen a significant number of market participants from all over the 1 / 5 BIS central bankers' speeches IGTA eJournal | Summer 2018 | 29