year. 5 the book provides guidance with succinct, clear statements and practical examples to help promote understanding of the code among tokyo market participants. iv. concluding remarks i firmly believe that the successful development of a single global code and greater adherence to it will reinforce the functioning of the foreign exchange market and facilitate vibrant, sound development of the market. the bank of japan has been, and will continue to fully support and be committed to the work of the global code. i am confident that this tokyo meeting will provide us with a valuable opportunity to achieve further progress in our work. thank you very much for your kind attention. available at http : / / www. fxcomtky. com / coc / code _ of _ conduct _ e2015. pdf. bis central bankers ’ speeches

of participants and a complexity in market structures across the globe. regarding the approach, guy debelle raised an important point in his speech last november, and let me repeat it here : history has shown that “ the more prescriptive it becomes the easier it is to get around [ because ] rules are easier to arbitrage than principles. ” 4 i fully support his views. b. collaboration between the public sector and the private sector the second key concept of the global code is that continuous collaboration between the public sector and the private sector is indispensable. the foreign exchange market has evolved through close collaboration between the public and private sectors. for example, the foreign exchange committees in the major financial centers typically comprise both central bankers and private - sector participants. work on the global code has also achieved progress through a public sector - private sector partnership. the mpg, which consists of both sell - side and buy - side institutions, has been providing valuable insight based on its members ’ expertise in market practices and innovation. it would be desirable that innovations led by the private sector continue to evolve under the appropriate code of conduct, thereby improving market functioning. the public sector should endeavor to align the private sector ’ s incentives appropriately to support further market innovation and sound functioning of the foreign exchange market. bank for international settlements ( 1999 ), “ market liquidity : research findings and selected policy implications, ” cgfs publications no 11. see guy debelle, “ the global code of conduct for the foreign exchange market, ” speech at the fx week europe conference in london on november 25, 2015. available at http : / / www. rba. gov. au / speeches / 2015 / spag - 2015 – 11 – 25. html. bis central bankers ’ speeches c. user - friendliness the third key concept is that the global code should be succinct, clear, and easy to use. the code becomes valuable only when market participants make good use of and adhere to it in their day - to - day business at the practical level. in addition, bearing in mind the existence of diverse participants and diverse business models, i would like to emphasize the importance of clearly addressing what market participants can do under the code. this is to prevent over - cautious behavior of market participants which could be detrimental to fostering well - functioning markets. as an initiative to enhance market functioning through clearer dialogue among market participants, the tokyo foreign exchange market committee developed the “ tokyo blue book ” in april last