By Anthony Mansfield, Gregory Mocek, Jonathan Flynn, and Jorge Pesok
On May 26, 2016, the Foreign Exchange Working Group (“FXWG”) of the Bank for International Settlements (“BIS”) published the first phase of a new “Global Code of Conduct for the Foreign Exchange Market” (“Global Code”). According to Guy Debelle, Assistant Governor (Financial Markets) at the Reserve Bank of Australia and head of the FXWG, the purpose of the Global Code is to set out “global principles of good practice in the foreign exchange market to provide a common set of guidance to the market, including in areas where there is a degree of uncertainty about what sort of practices are acceptable, and what are not.” As such, the Global Code will likely be used by global regulators to define “best practices” in the FX markets, and the behavior that would be deemed disruptive, abusive, or manipulative. read more