On 25 May 2017, the European System of Central Banks (ESCB) welcomed the publication of the Foreign Exchange Global Code of Conduct (“the Code”), issued by the Bank of International Settlements which sets out a common set of conduct standards for participants in the FX market.
The Central Bank, as a member of the Eurosystem, has endorsed the use of the Code in Ireland. On 29 November 2017, the Central Bank and 14 other ESCB central banks simultaneously issued Statements of Commitment (“Statement”) demonstrating adherence to the principles of the Code.
By formally adopting the Code, the Central Bank has demonstrated that it is committed to adhering to the principles of the Code when acting as a foreign exchange market participant and ensuring that its internal practices and processes are aligned with the principles of the Code. It also emphasises that the principles of the Code are important in promoting the integrity and effective functioning of the wholesale foreign exchange market and the Central Bank’s expectation is that other market participants will adopt it.