FX Global Code
The FX Global Code is a set of global principles of good practice in the foreign exchange market which has been developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. The Global Code is developed by the Bank for International Settlements (BIS) together with 16 central banks and private sector participants, and the Global Code is maintained and updated by the Global Foreign Exchange Committee (GFXC).
The FX Global code comprises of 55 principles that are organized into 6 major principles as follows:
1. Ethics: Market Participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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
Adopting the Global Code enhances the market standard and benefits all types of market participants. Therefore, the Bank of Thailand (BOT) has conducted self-assessment to ensure that our practices and processes are aligned with the Global Code. The BOT has ultimately issued the Statement of Commitment to the FX Global Code to demonstrate that our practices and processes in conducting activities in the wholesale foreign exchange market are aligned with the principles of the Global Code. In addition, the BOT strongly encourages all types of market participants to adopt the Global Code, particularly commercial banks. In this regard, starting from 2025 onwards, the BOT’s eligible domestic foreign exchange trading counterparties must adhere to the Global Code.