Forex markets unveil first global code of conduct
The new guidelines for currency trading are designed to rebuild trust in the forex market.Traders are now banned from lying and starting false rumours under the first global code of conduct on the foreign exchange market, which was released last week.
Set up by 21 central banks and 35 international banks, it is aimed at rebuilding trust in the foreign exchange market, which was recently plagued by accusations of manipulation and misuse of confidential customer order information.
"The foreign exchange industry has suffered from a lack of trust," Reserve Bank of Australia assistant governor Guy Debelle told Reuters. "The market needs to rebuild that trust."
However, he said that the code is not regulation, but a set of principles.
The code specifies that information contained in banks' research can only be shared after it is published, and client order information can only be shared "sensitively" and if there is a "valid reason" for doing so.
Participants are also banned from lying to others or starting rumours about reasons for market moves in a bid to influence it.
The code comes after seven of the world's top banks were fined around $10 billion for market manipulation.