FX Global Code

The FX Global Code was published on 25 May 2017.

The Code is a set of global principles of best practices in the foreign exchange market, developed to promote its integrity, transparency and liquidity and to foster the harmonization of good practices at global level.

The Code was developed at the request of the Bank for International Settlements and is the result of a partnership between central banks and the private sector. It does not impose legal or regulatory obligations but rather contains a general set of guidelines, and it should serve as a supplement to any and all local laws, rules and regulations, with a view to aligning standards and rules of conduct at global level.

The Code covers issues that are especially relevant for the FX market, such as ethics, governance, order execution, information sharing, internal control systems, risk management, and transaction confirmation and settlement.

Its success in the market and its effectiveness in achieving its objectives depend on the degree of voluntary adherence by market participants. For this reason, a blueprint for achieving widespread adoption of the Code has been developed (Report on adherence), which requires both central banks and market participants to play an important role. Central banks, in particular, are called on to lead by example by adopting the Code and to raise awareness among market participants.

A Statement of Commitment was published alongside the Code, allowing market participants to voluntarily signal their commitment to adhere to the principles of the Code. Market participants may publish the Statement on their website or in the public registers.

In July 2021, the Global Foreign Exchange Committee (GFXC) published an updated version of the Code, following its first triennial review in accordance with governance rules. The Code was updated to keep it aligned with ongoing developments in the FX market. The GFXC has encouraged market participants to consider renewing their Statements of Commitment accordingly.

The Bank of Italy, along with the other ESCB central banks, publicly undertook to support and comply with the Code by signing the Statement of Commitment for the first time in 2017, and again in 2022, to the updated version of the Code.

The ESCB continues to promote adherence to the Code by industry associations and their regular FX trading counterparties.