While we were initially less optimistic about buy-side adoption relative to the sell-side, our outreach efforts have indicated that once the buy-side sees the benefits the Code brings, they become enthusiastic adopters. The third reason why this Code will be different, is that it was developed by an unprecedented public-private partnership, and will be kept relevant over time. The development process for the Code was an intense and inclusive one, involving the participation of a wide range of market participants. Hence, we expect strong buy-in from market participants. This partnership also recognises the importance of keeping the Code relevant over time. Moving forward, the Code will be collectively owned and maintained by the local Foreign Exchange Committees (or FXCs), through the Global Foreign Exchange Committee (or the GFXC). The GFXC was launched in May this year, together with the publication of the Code. The GFXC, comprising members from key central banks and private sector market participants, will assess regularly if there are new market developments that should be included into the Code. It will also oversee a comprehensive review of the Code on a less frequent basis, keeping the Code relevant over time. Fourth, extensive outreach to market participants has been done and will continue. Over the past two years, extensive outreach was undertaken to more than 120 sell-side and buy-side industry associations, and key market infrastructure globally. The response has been positive. These efforts by the GFXC, central banks and local FXCs, to raise awareness and encourage adherence to the Code, will continue.
Jacqueline Loh: Implementation of the FX Global Code Keynote speech by Ms Jacqueline Loh, Deputy Managing Director of the Monetary Authority of Singapore, at the 13th FX Week Asian Conference, Singapore, 23 August 2017. * * * Eva Szalay, Editor, FX Week, Ladies and gentlemen, good morning. Thank you for inviting me to join you at the 13th FX Week Asia Conference. I am very happy to join you today. The foreign exchange or FX market – which all of you are participants in – is the largest and most liquid of financial markets globally. It has grown remarkably over the past few decades. Between 1995 and 2016, a 21-year period, global FX turnover rose from $ trillion to $ trillion per day, according to the BIS Triennial FX Survey, representing a compound annual growth rate of more than 7%1. Its importance extends beyond financial markets and participants, and is reflected in how it supports the real economy, forming the backbone of international trade, and cross-border investments. Looking back, while we have seen healthy growth in volumes, the same cannot be said of conduct. The misconduct that has come to light in recent years, has eroded trust in the FX market. Looking ahead, for the FX market to continue to grow in a sustainable manner to support economic growth, guiding behaviour in the FX market and anchoring strong culture within firms through good market practice will be key.