The code published by Bank of International Settlements (BIS), in order to ensure a global set of good practices being followed in the foreign exchange market. The code is applied to the foreign exchange market globally and sets out robust, fair, liquid, open and transparent forex market with high ethical standards. The codes have been developed in a collaborative process with BIS and other market participants. The bank expects that its counterparts are bound by the new framework that the governs Fx transactions globally.
Singapore is one of the world’s biggest foreign exchange market and follows a very strict regulatory framework. By adhering to the Fx global code, all counterparties that are interacting with the Singapore’s financial authority will also need to adhere to the code. Smaller counterparties will also need to adhere to the good practice set out in the document.
MAS in an official statement: “The Institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its FX Market activities in a manner consistent with the principles of the Code. To this end, the Institution has taken appropriate steps, based on the size and complexity of its Activities, and the nature of its engagement in the FX Market, to align its Activities with the principles of the Code,”