On the first point, the Code is replacing the existing codes of conduct that have been present in the FX market, including the ACI model code used here in Australia. Importantly, the Code covers 1/3  BIS central bankers' speeches  all of the wholesale FX industry. This is not a code of conduct for just the sell side.
The separation proposal outlined in Avenue 2 was based on the notion that capital requirements are not by themselves sufficient to limit excessive risk-taking incentives induced by deposit insurance if risks are difficult to measure and risk profiles can be changed rapidly, as in trading activities.