, and establishing globally consistent and effective adherence mechanisms. the success of the global 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, making clear their intention for the global code to become an integral part of the wholesale fx market. 7 furthermore the bis central banks signalled their commitment by announcing that they themselves will follow the code, and that they expect that their counterparties will do so too. 8 our intention is that the complete code will be released following the global foreign exchange committee meeting 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 by the fxcs and market participants more generally. http : / / www. bis. org / mktc / fxwg / am _ may16. pdf. http : / / afxc. rba. gov. au / news / afxc - 26052016. html. http : / / www. bis. org / press / p160526a. htm. bis central bankers ’ speeches 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. i will have more to say about how this ongoing evolution of the code might occur in due course. conclusion that, i trust, gives you a reasonable overview of the state of play on the global code. a lot of work has been done to get us to this point. there is still a lot of work to be done. 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 how the market functions. i expect that cooperative relationship will continue as we see this process through to its conclusion in may next year. bis central bankers ’ speeches

##ulating these principles is to provide market participants with the framework in which to think about how they handle stop - loss orders. the emphasis here is very much on the word “ think ”. the global code will not provide the answers to all your questions, but it should help you ask the right questions. in a similar vein, i will repeat a point that i have made a number of times in the past. one of our most central aims in drafting the code is for it to be principles - based rather than rulesbased. there are a number of reasons why this is so, but for me, an important reason is that the more prescriptive the code is, the easier it is to get around. rules are easier to arbitrage than principles. if it ’ s not expressly prohibited or explicitly discouraged, then it must be okay seems to be the historical experience. moreover, the more prescriptive and the more precise the code is, the less people will think about what they are doing. if it ’ s principles - based and less prescriptive then, as i just said, market participants will have to think about whether their actions are consistent with the principles of the code. adherence to the code alongside drafting the code, we have also been devoting considerable time and effort to thinking about how to ensure widespread adoption of the global code by market participants. clearly, that has been an issue with the various existing codes that have been in place in a number of markets over many years. it is evident that they were ignored on occasion, wilfully or otherwise. as i said earlier, we are working with the industry to produce a principles - based code of conduct rather than a set of prescriptive regulatory standards. it will not impose legal or regulatory obligations on market participants, nor will it supplant existing regulatory standards or expectations. but we do expect the principles in the code to be understood and adopted across the entire fx market. we laid out our overall approach to adherence to the code in new york last month 6 and we intend to work closely with market participants in the coming year to facilitate the development of market - based mechanisms which demonstrably embed the global code within firms ’ culture and practices. these mechanisms need to be sensitive to existing law and regulation and to the diverse nature of fx markets globally. hence a ‘ one size fits all ’ approach to adherence would not be appropriate. we need to strike the right balance between respecting the existing diversity across different markets