12th July 2018 – The European Association of Corporate Treasurers (EACT) has today launched a register for corporates adhering to the FX Global Code (Code). Since its drafting phases, the EACT has supported the Code, which is a set of global principles of good practice in the foreign exchange market published in May 2017.
The purpose of the Code is to promote a robust, fair, liquid, open, and appropriately transparent market for all market participants. The Code provides a common set of principles to promote the integrity and effective functioning of the wholesale foreign exchange market. The Code covers areas such as ethical behavior, governance, execution, information sharing, risk management and confirmation and settlement processes. Adherence to the Code applies in a proportionate manner to different types of market participants, depending on the type of participant and the complexity of their operations and their engagement with the FX market.
The EACT’s register is intended for corporate treasury departments that are participating in FX markets as end-users. The EACT register is included in the Global Index of Public Registers.
EACT Chair Jean-Marc Servat, said: The FX Global Code is a very positive initiative aiming at ensuring fair and transparent FX markets that benefit all participants, including corporate end-users. We believe that a widespread adherence to the Code and its principles can truly help improve the functioning of FX markets and prevent some of the dysfunctions of the past. We therefore encourage corporate treasury departments to familiarise themselves with the Code’s principles and to adhere to it, as well as to prompt their banking partners to adhere to the Code. The EACT welcomes corporations to post their Statements of Commitment on its register to demonstrate their adherence and support to good practices in the FX market.
The EACT FX Global Code Register is available here.
More information on the Code can be found here.
