The first integral and comprehensive global code, which is intended to regulate the foreign exchange market affected by scandals and other major events that can destabilize or disharmonize the fluxes and moves within the market, will enter into force in May 2017, reported on Wednesday the representatives of central banks.
During three years, in which there were organized a number of investigations of major banks activities, dozens of traders were suspended or dismissed, and the banks have paid billions of dollars in fines for manipulating the rates of the currency market.
Creating a new Code by the Committee of the Bank for International Settlements (BIS) is another attempt to prevent further violations and to restore faith in the fact that the market operates fairly. The Forex market has a reputation as the most fair and difficult to manipulate market from all.
The document will, in particular, regulate issues such as automatic stop orders which are limiting losses, said the deputy governor of the Reserve Bank of Australia, Debell Guy, at a briefing at the Bank of England.
Six codes that are functioning at the moment will be abolished in favor of the first global code, the activities of which will extend, in addition to traders, to asset managers and trading platforms.
"We're trying not to reinvent the wheel in this Code, but to rely on the systems and factors that already exist, - said Debell, who heads the Committee of the BIS. - It is obvious that there is a real need to restore confidence in the way the market works."
It is suggested that the Code will make additions reflecting the regional characteristics of markets in some cases.
The Code will not receive a formal and obligatory status, and its performance will depend on the governments.