4/6  BIS central bankers' speeches  We have heard that CLS, has established a public register on their website, where CLS members are able to post their Statements to publicly demonstrate adherence to the Code. The BIS Governors have asked the BIS Markets Committee, which I currently chair, to assess the effectiveness3 of the Code over time. This will likely take place 3 years after the launch and will be conducted together with the GFXC. This is a demonstration of the BIS Governors’ ongoing commitment to the Code. Embedding, monitoring and demonstrating adherence are actions that we hope that you will take to support adherence of the Code. As a first step, I strongly encourage all of you to read the Code. You will find that it is written in simple language and addresses many issues where there were previously no guidance on. Consider how it can be applied to your firm, taking into account proportionality – i.e. how the principles are embedded must be in the context of the nature and the significance of your activity in the FX market. Consider how you can encourage counterparties to adhere. It would be a positive outcome if it becomes a norm that each new counterparty relationship starts off by bilateral indication that both parties adhere to the Code. Central banks leading the way We, in our capacity as central banks, will lead the way.
Third, firms should be able to demonstrate publicly that their conduct in the FX market is in line with the Code. A key part of the Code is the Statement of Commitment that is found in Annex 3 of the Code. This is a single, common basis by which each market participant can demonstrate that it commits to adhere to the Code2. It will be up to each market participant to decide whether and how to use the Statement. For example, some market participants may choose to publish their Statement on their websites, or provide a copy to counterparties when establishing trading relationships. Thus far, a number of the largest FX market participants have indicated that they will be signing the Statement by May 2018. The industry is also considering the development of public registers, which are essentially repositories where market participants can publish their Statements. Public registers can enhance transparency around the level of adoption of the Code, and can be a means to monitor the success of the Code over time. Feedback from market participants has indicated that there is a demand for public registers. Market participants that have signed the Statement can publicly demonstrate that they have done so on such public registers. Market participants can also use public registers to find out which of their peers or counterparties have signed the Statement.