The FX Global Code (Global Code) is a set of global principles of good practice in the foreign exchange market, developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. It was developed by a partnership between central banks and market participants from 16 jurisdictions around the globe.
The purpose of the Global Code is to promote a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of market participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour.
The Global Code does not impose legal or regulatory obligations on market participants, nor does it substitute for regulation, but rather it is intended to serve as a supplement to any and all local laws, rules and regulations by identifying global good practices and processes.
Millennium Global signed a statement of commitment to the FX Global Code in May 2018 and is committed to implementing best market practices. Millennium Global participated in creating the Global Code. We were represented for many years on the Bank of England’s Foreign Exchange Joint Standing Committee, and in that context participated in the work to develop the Code, led by the Bank for International Settlements. The Bank of England asked Millennium Global’s representative to be the sole private sector representative for the UK on the supervisory committee during the first phase of implementation of the Code.
Keywords: currency hedging, currency overlay, currency management.