why the buy - side should buy into the fx global code remarks given by andrew hauser, executive director, markets at london fx hive live 6 december 2018 i am very grateful to frederick ladbury, ed kent, david edmunds, grigoria christodoulou, rohan churm, david clark and david puth for their help with, or input to, these remarks. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx introduction thank you very much for the invitation to speak with you today. much of your agenda is rightly focused on the future : on how to exploit new technology ; how to trade with new platforms and market participants ; and how to meet ever more demanding customer needs. that relentless push to innovate is one of the great strengths of the global fx markets, and it is a privilege to be part of that conversation. against that backdrop, my own remarks – on getting the buy - side signed up to the fx global code – might seem a little backward looking. i hope to convince you otherwise. at a time when fx markets are evolving rapidly, there has never been a more important time for investors active in those markets – all of you – to be shaping, and adopting, the norms, conventions and standards embodied in the code. you are a vital part of the market, and play a crucial role in maintaining market discipline. leaving the maintenance of standards to others – to the sell - side, to public authorities and regulators, or ( worst of all ) to no - one, as happened a decade ago – cannot serve either your interests, or those of your investors. in my remaining remarks, i want first to review the strong progress that has already been made on developing and embedding the code, including in some buy - side firms. i will then turn to review four specific concerns sometimes heard from buy - side colleagues still unsure about signing up, and set out what i hope will be persuasive responses. strengthening buy - side adoption is one of the global fx committee ’ s top priorities for the coming year – and we have asked senior figures from both sides of the market to lead that work, working either as individual liaison representatives, or as members of a new buy - side outreach working group. i am pleased to see several of them here today – including david clark, robbie boukhoufane and richard purssell – and i know they

to make this happen through the careful design of a cbdc to ensure it promotes stability and good economic outcomes. design questions are critical. for example, who would be able to access cbdc directly? would it be mainly a payments device and a cash like instrument? or would it be able to serve as a mainstream vehicle for savings and store of value? would it be remunerated or not and how appealing should any remuneration be versus commercial bank money held on deposit accounts? would we apply limits or restrictions on its use to control demand in normal times or in stress? how and to what extent should data and privacy be protected? and crucially, running though all of these design questions of the question where the public / private boundary lie ; which functions and services should be provided by the central bank and which by the private sector? these are profound questions and choices that would inform any decision to launch a cbdc. we certainly do not have the answers today. we should however recognise a couple of realities. first, that the form of money has always been evolving and that technology and consequent changes in the way we want to live and transact with each other are now driving rapid change in money and payments. we cannot hold that back. we need to think about and debate these issues now. and in thinking about cbdc, we should think about the role it could play in the future and how money and payments might evolve in its absence. second, changes in the form of money have implications that go wider than finance and economics. we should recognise there are questions about privacy, competition, inclusion, the role of the public sector and other broader societal issues. these will require the engagement of the political authorities and will need broader debate. it is, therefore, and once again, time for us to talk about money. all speeches are available online at www. bankofengland. co. uk / news / speeches chart 1 : cash as a share of transactions money source : bank of england, and thomas, r and dimsdale, n ( 2017 ) " a millennium of uk macroeconomic data ", bank of england obra dataset : https : / / www. bankofengland. co. uk / - / media / boe / files / statistics / research - datasets / a - millennium - of - macroeconomic - data - for - the - uk. xlsx total transactions money is defined as the sum of notes and coin held by the