what exactly separation entails. we did not intend to be too prescriptive here. the main principle is the appropriate segregation of the information flow. there may be a number of different ways of achieving this. an issue which arises here is that the separation of business is clearly more complicated in smaller currencies than it is in the more heavily traded currencies. in response to these issues, i will consult with my fellow central banks and securities regulators on these questions and determine if more guidance can be given around this. third, the group made a number of recommendations around the appropriate sharing of information. these recommendations focused on general principles around information sharing. the group ’ s assessment was that outlining a set of principles was more beneficial in ensuring appropriate behavior than more prescriptive statements. detailed prescriptions run the risk of being incomplete with the potential for market participants to make the assessment that if something was not in the prescriptions then it must be allowable. a set of principles require market participants to think more carefully about their general approach to information sharing. codes of conduct a similar set of principles are to be embodied in a code of best market practice and shared global principles, which is currently in the final stage of being written jointly by the various foreign exchange committees. the aim is to promote a set of shared global principles common across all the fx committees, notwithstanding the fact that the various jurisdictions employ different codes of conduct. a final version of the statement of shared principles should be published following the next global meeting of foreign exchange committees in tokyo in march. the fxbg also recommended that market participants should demonstrate stronger compliance with the various codes of conduct than has been the case in the past, as well as with their own internal codes. various initiatives are under way on this recommendation at both the institutional level as well as with the market as a whole. appropriate enforcement of these codes remains a major challenge. in the uk, the femr highlights this issue as a significant opportunity for reform. bis central bankers ’ speeches much of this comes down to ensuring that the institution, and the fx market more generally, has the appropriate culture. but the same problem arises with codes of conduct as with the principles for information sharing i talked about a minute ago. if the codes of conduct are too prescriptive, they are very difficult to draft, they quickly become unreadable and they run the risk that if something is not explicitly prohibited, it must be okay. matt levine articulates this problem very

levine m ( 2015 ), “ levine on wall street : culture and retaliation ”, bloombergview, 2 february. available at < http : / / www. bloombergview. com / articles / 2015 – 02 – 02 / levine - on - wall - street - culture - and - retaliation >. bis central bankers ’ speeches the information flow. there are, again, a number of potential solutions to this and i accept there may be some scope to provide more guidance around this recommendation, particularly in the case of less - traded currencies. to conclude, there is a strong expectation that these recommendations will be implemented to deliver an improvement in the execution of foreign exchange transactions referencing fx benchmarks and the integrity of the benchmarks themselves. the fsb has approved the recommendations contained in the fx benchmark group ’ s report. if these recommendations are not implemented, then the likelihood of a regulatory response will increase. bis central bankers ’ speeches