European System of Central Banks Updates Commitment Statements in the FX Global Code

The European System of Central Banks (ESCB) welcomes the updating of the FX Global Code in July 2021 and the publication of the relevant guidance material. With this Code, foreign exchange market participants aim to promote a credible, fair, fluid, open and appropriately transparent foreign exchange market, based on high standards of ethics.

The Code has been updated by the World Currency Commission to keep it up to date, to monitor the ongoing development of the foreign exchange market and to continue to be the model of good market practice. The smooth functioning of the financial markets is beneficial to all market participants and important for central banks to ensure the smooth transmission of monetary policy to the real economy, which ultimately benefits all citizens.

Today all ESCB members, including the European Central Bank (ECB), have simultaneously issued renewed Commitment Statements to the Code. This demonstrates their strong commitment to adhere to the principles of the Code when acting as participants in the foreign exchange market, to align their internal practices and procedures with the updated principles of the Code, and to support and promote compliance with the Code. With these Commitment Statements they emphasize that the principles of the Code are important to ensure the preservation of the integrity and efficient operation of the foreign exchange market.

In order to fully achieve the purpose of the Code, EU central banks are also encouraging foreign exchange market participants in their respective countries to study the updated Code and renew their Commitment Statements.