“There is a need for it” is the simple answer, when asking Mick Ankjaer who has been Nordeas representative in the European Central Bank (ECB) FX Contact Group. The FX Global Code act as a supplement to any and all local regulation, and Nordea will commit to adopting the code. “Given our leading role in the Nordic FX market, we are committed to, and have supported the development. It is vital for us that we keep developing the FX market, but keep the highest ethical standards when doing so” said Mick Ankjaer.
The FX Global Code
The FX Global code was launched on May 25 2017, and the expectation is to over the next 12 months have all participants in the FX market to adopt the principles. “Being active in the development of principles under the FX Global Code is one thing, but early out of the gates to committing to it, sends a strong message to our customers and the participants in the FX Market, Ankjaer concludes.
The six leading principles of FX Global Code
- Ethics: Market Participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
- Governance: Market Participants are expected to have a sound and effective governance framework to provide for clear responsibility for and comprehensive oversight of their FX Market activity and to promote responsible engagement in the FX Market.
- Execution: Market Participants are expected to exercise care when negotiating and executing transactions in order to promote a robust, fair, open, liquid, and appropriately transparent FX Market.
- Information Sharing: Market Participants are expected to be clear and accurate in their communications and to protect Confidential Information to promote effective communication that supports a robust, fair, open, liquid, and appropriately transparent FX Market.
- Risk Management and Compliance: Market Participants are expected to promote and maintain a robust control and compliance environment to effectively identify, manage, and report on the risks associated with their engagement in the FX Market.
- Confirmation and Settlement Processes: Market Participants are expected to put in place robust, efficient, transparent, and risk-mitigating post-trade processes to promote the predictable, smooth, and timely settlement of transactions in the FX Market. The Global Code will be periodically reviewed and is expected to evolve over time in a similarly collaborative manner
Niels Christensen, Chief Analyst, Nordea Markets