ACIFMA mandates its members to commit to FX Global Code
Posted: 20 March 2017 | Brigid Taylor, Managing Director, ACI Financial Markets Association | No comments yet
ACIFMA urges its 9,000 members to commit to new FX Global Code, as new rule-set for FX practice nears the end of its development phase.
With the FX Global Code – a set of principles outlining good practices for wholesale FX markets – nearing the end of its development, Brigid Taylor, Managing Director at ACI Financial Markets Association, explains how ACIFMA will ensure its members will commit to the new rules.
“In the three years since the process began to develop a single, global code of conduct for the FX market, the Foreign Exchange Working Group (FXWG) and Market Participants Group (MPG) have made enormous strides forward.
“As a member of the MPG, ACI Financial Markets Association (ACIFMA) has both contributed and witnessed the extent to which market participants and policymakers have engaged, discussed, debated and worked together in the best interests of the wider market.
“As we near the final stages of the development of the FX Global Code, the focus is shifting towards commitment to the Code and adhering by its principles. ACIFMA is the largest trade association for theglobal foreign exchange market and is leading efforts to support education and adherence.”
What needs to happen and how will ACIFMA deliver this?
“It is essential that individuals: commit to adhering to the Code; receive the appropriate training and education so they are clear on what is expected and understand how to comply; and sign up to a solution where senior managers are able to observe and address any training and educational gaps amongst their subordinates.”
“There are several ways we intend to achieve this. Firstly, we will make it a prerequisite for individuals to commit to adhering to the FX Global Code as part of their membership.
“This means a meaningful proportion of the market – over 9,000 FX professionals around the world – will sign up immediately after the code is launched and commit to understanding, implementing and abiding by the new principles.
“Secondly, as part of the ACIFMA’s comprehensive certification process, and previous work undertaken by our FXCommittee and our Committee for Professionalism in relation to ethical conduct, we will extend our training and certification to support compliance to the FX Global Code and certify that individuals have demonstrated an appropriate understanding of its principles and guidelines.
“Lastly, our E-Learning, Attestation & Certification (ELAC) portal will become a central repository for continuous education, training and adherence to the FX Global Code.
“This will enable market participants to understand the practical applications of the Code’s principles and ensure they are aware of any new updates or additions.
“The final Code will, in my view, outline principles and guidance that is effective, appropriate and strike the right balance. I expect it to act as an essential reference for market participants when conducting business in the wholesale FX markets and when developing and reviewing internal procedures.
“I expect the FX Global Code to be a turning point in reforming conduct and behaviour in foreign exchange and develop a renewed sense of trust in this important sector of any economy.”