ACI – Financial Markets Association, the global trade association representing more than 13,000 wholesale financial markets professionals, says it has launched its updated Model Code for 2015 alongside a new online learning portal, as it reiterates the need for enforcement of an international code of conduct to govern trader behaviour.
It says the updated Model Code places a renewed focus on education and ensuring individuals are educated on the appropriate ethical standards and behaviour expected of them by their employers and the market. It includes new guidance on last look practices, high frequency trading, aggregation, rate setting, FX dark pools, and advice on best practice during times of extreme market volatility – the latter recently highlighted by the extreme market volatility that followed the Swiss National Bank’s removal of a currency floor earlier this year.
It is further reinforced by the key messages from the global central bank FX Committees from Tokyo this week, as the FX Committees are calling for exactly what ACI FMA provides. Market participants must have well documented policies and procedures in place and sufficient systems and controls to protect FX trading information within the dealing environment, and other areas of the market where participants may obtain such information. They should also ensure that personnel have been trained with respect to such policies.
Marshall Bailey, President of ACI – Financial Markets Associations comments: “Regulators are rightly stepping up efforts to tackle trader misbehaviour and place ethics at the heart of their market reforms. There is a clear and urgent need to reform the culture and conduct of the financial services sector, and the ACI’s Model Code and ELAC Portal sets the benchmark for industry best practice across the fixed income, currencies and commodities in order to achieve this. Again, this is endorsed by the Global FXC this week, which stated: “FX market participants should consider, as appropriate, adopting a process by which relevant managers periodically attest to the supervision of their staff with respect to compliance with the FX Policies”.