bankers'speeches without blaming them for what occurred, more scrutiny from counterparties about how their fx transactions were being executed may have helped to reduce the incidence and severity of the market abuses that occurred in the past. fx transactions were sometimes regarded as ancillary to the core business, notwithstanding their potential impact on returns. ultimately the success of the code in promoting integrity and restoring confidence in the wholesale fx market lies in the hands of its participants. that is why the global fxcs issued a joint statement of support at the launch of the code in new york as well as stating their intention to make adherence to the code a likely requirement of fxc membership. 4 that would ensure the code is embedded at the core of the fx market, but it is also important that it extends beyond that, and that there is, at the very least, an awareness of it across all market participants. a second dimension of adherence is that the bis central banks have signalled their commitment by announcing that they themselves will follow the code, and that they expect that their counterparties will do so too. 5 to that end, the rba will no longer transact in the fx market with those that don ’ t commit to adhere to the code after its release in may. a third dimension of adherence is that we are talking to regulators in our various jurisdictions as to how they might use the code in monitoring market conduct. in australia, asic is very supportive of the development of the code and is considering how it might utilise the code in its market surveillance. the fca in the uk is considering how they might incorporate the code in the senior managers regime there. conclusion we are on track to complete the code so that it will be released in london in may 2017. at the end of that process, for the code to be effective and for it to achieve what we want it to achieve, it will need to be accepted and endorsed across the full spectrum of market participants. that said, the process does not really end, because as the foreign exchange market continues to evolve, the code will need to evolve with it. the work to date has reflected a very constructive and cooperative effort between the central banks and market participants. all of us recognise the need to restore the public ’ s faith in the foreign exchange market and the value of the global code in assisting that process and also in helping improve market functioning and confidence in the market. 1 see < www. bis. org / mktc / fxwg / gc

_ may16. pdf >. 2 see < www. bis. org / press / p150511. htm >. 3 see < www. bis. org / mktc / fxwg / am _ may16. pdf >. see also c salmon ( 2016 ), ‘ rebuilding trust through the ‘ fx global code ’ : reasons for optimism ’, available at < www. bankofengland. co. uk / publications / documents / speeches / 2016 / speech924. pdf >, speech given at the aci uk square mile debate, london, 7 september ; and s potter ( 2016 ), ‘ the role of best practices in supporting market integrity and effectiveness ’, available at < www. newyorkfed. org / newsevents / speeches / 2016 / pot160907 >, remarks at the 2016 primary dealers meeting, federal reserve bank of new york, new york city, 7 september. 4 see < afxc. rba. gov. au / news / afxc - 26052016. html >. 5 see < www. bis. org / press / p160526a. htm >. 3 / 3 bis central bankers'speeches