Macro-prudential policies make sure that the leverage that the economy creates at that floor interest rate and the spreads that are paid by risky borrowers  14  See Adrian T. and H. S. Shin, (2010), “Financial Intermediaries and Monetary Economics”, Federal Reserve Bank of New York Staff Reports, No 398; and Maddaloni A. and J.-L. Peydró, “Bank Risk-Taking, Securitization, Supervision, and Low Interest Rates: Evidence from the Euro Area and U.S.
The market is seeking greater guidance as to what principles should be followed, including the different standards that may apply depending on whether an intermediary is functioning as principal or agent. This is one area that was not adequately covered in the pre-existing codes that the various FXCs had endorsed for the FX market.