brokerage, as well as governance, and risk management and compliance. we have made substantial progress in drafting the second phase. it will be circulated for comment through the various fxcs in early october. so, the jsc will be providing feedback on behalf of the london market. as was the case with the first phase, there will be three opportunities for market participants to provide feedback on the material over the next six months or so. we will endeavour to make clear how the feedback provided has been addressed through each of the feedback phases. the aim is for the full code to be published in may 2017 and we are on track to achieve that. i will now talk about a couple of the areas that are addressed in the first phase of the code, which is already in the public domain. in the first phase, topics were covered that the market was looking for guidance on sooner rather than later and that were potentially having an adverse effect on market functioning. one example of this is around information sharing, where many market participants have highlighted that they are unsure what information can be conveyed to counterparties and other market participants. while it is clear ( or at least should be ) that disclosing the details of a client ’ s order book to a counterparty is not acceptable, market participants have noted that there is much less clarity around what level of aggregation, say, is necessary in order to convey market colour appropriately. as a result, it appears some market participants are being very conservative in sharing information, which can have implications for the effective functioning of the market. this is notwithstanding the guidance provided in this area in the global preamble put out by the global foreign exchange committees, in march 2015. 4 the global code takes the material in the global preamble and fleshes it out a bit more, including with some examples of what is, and isn ’ t, appropriate communication, and why. there will be more examples on information sharing provided in the second phase of the code. similarly, there have been diverse opinions around what is appropriate behaviour in terms of order handling. while there have been some very public instances of inappropriate behaviour around order handling that have come to light in recent years, in other areas, the market is seeking greater guidance as to what principles should be followed, including the different standards that may apply depending on whether an intermediary is functioning as principal or agent. 5 this is one area that was not adequately covered in the pre - existing codes of conduct that the 2 / 4

than to be sorry in banking supervision, especially in the current uncertain macroeconomic circumstances. 3 - and underlying currents are firming moreover – while the macroeconomic tides may have changed, many of the structural challenges facing banks have not. indeed, the underlying currents which banks were already affected by last year, are still very much present. in fact, important currents have even firmed with the change in tides. this becomes very clear if we look at the consequences of the ongoing climate and environmental crises. another year has passed, and we have further confirmation – not that any was needed – that heatwaves, floods, droughts and environmental degradation are on the rise. the low water levels in the rhine this summer – for decades a moniker for a successful social economic model that has inspired the very objectives of the european union – show how traditional sources of economic welfare are being upended by the climate crisis. 2 / 5 bis - central bankers'speeches at the same time, russia's terrible war against ukraine has hardened the eu's determination to make progress with the energy transition. it's true that, in the very near term, the energy crisis will lead to an increase in the use of non - gas fossil fuels. nevertheless, the likelihood of a transition towards a low - carbon economy consistent with the eu's commitment to reaching net - zero by 2050 has increased. the main message from this should be clear. and it's identical to what i had in my notes for last year, though i will express it even more forcefully today. climate - related and environmental risks are a source of financial risk. even if the exact outcome is uncertain, a combination of physical and transition risks from the ongoing crises will materialise. and with global temperature increases drawing ever closer to 1. 5 degrees above pre - industrial levels, and the world being on track for a 2. 8 - degree increase by the end of the century, these risks are increasingly likely to materialise in a disruptive fashion. we need banks to manage these risks, in line with the expectations for sound risk management practices that we have published in a supervisory guide in 2020. 4 two weeks ago, we published the results of a thematic review of how banks manage climate - related and environmental risks. 5 this is the first time that our core banking supervision teams – the joint supervisory teams – have thoroughly assessed banks'risk management practices in this area. their findings show that, even though banks are starting to manage these risks by