This Code extends to all wholesale market participants – sell-side, buy-side, non-bank market makers, trading platforms and market infrastructure. A question that we have been asked frequently comes from buy-side participants – Why does the Code matter to me? The application of the Code to all wholesale market participants, including the buy-side, stems from the belief that good practices should apply to all market participants and not only a subset. 2/6  BIS central bankers' speeches  With widespread adoption, the power of market discipline and peer pressure can be immense. This is important for a voluntary Code. The Code incorporates the principle of proportionality, given the diverse nature of market participants. What this means is that not every principle will apply directly to every market participant. In the case of a buy-side participant, you will find that only a portion of the principles have direct applicability. For example, most of the principles relating to execution are directly applicable only to sellside participants. Hence, the implementation burden may not be as significant as one would expect. Nevertheless, while the rest of the principles may not have direct applicability, they provide clarity to your counterparty relationship with the sell-side. By understanding the practices that your counterparties are abiding by, it informs what you should expect from the counterparty relationship. For example, in the hotly debated issues of mark-ups and last look, the good practices help you make more informed choices in selecting and interacting with your counterparties.

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.