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FX Global Code -- Formulation of a Single Global Code of Conduct for the Foreign Exchange Market and Initiatives to Promote Widespread Adherence --

July 6, 2017
Tetsuro Matsushima, Masao Fujiwara, Hirotaka Inoue*
Financial Markets Department

  • Currently at the Hakodate Branch

Misconduct in overseas foreign exchange (FX) markets that came to light in 2013 led to increased recognition of the importance of enhancing discipline in the global FX market. Beginning in 2015, the Foreign Exchange Working Group (FXWG), under auspice of the Bank for International Settlements (BIS) Markets Committee, undertook the formulation of a single global code of conduct for the FX market. After a two-year initiative, the final FX Global Code (Global Code) was published on May 25, 2017. The Global Code, expected to apply to all wholesale FX market participants, strengthens discipline in various areas of market participants' FX activities, and provides a variety of mechanisms to promote voluntary adherence by market participants. For the FX market to function smoothly, the Bank of Japan expects adherence to the Global Code by a wide range of market participants, and will continue to work closely with other central banks and private market participants to support initiatives to ensure the soundness of the FX market.


Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2017-E-6, is a translation of the original Japanese version, 2017-J-9, published in May 2017. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan.

If you have comments or questions, please contact the Foreign Exchange Division, Financial Markets Department (Tel:+81-3-3279-1111).