is also very much a public sector - private sector partnership. in that regard, we are being supported in this work by a group of market participants, chaired by david puth of cls. the group contains people from all around the world on both the buy side, including corporates, and the sell side, along with trading platforms and non - bank participants, drawing from the various fxcs and beyond. hence all parts of the market are being involved in the drafting of the code to make sure all perspectives are heard and appropriately reflected. these principles are available at : http : / / www. rba. gov. au / afxc / about - us / pdf / global - preamble. pdf. < http : / / www. bis. org / press / p150511. htm > < http : / / www. bis. org / about / factmktc / fxwg. htm > bis central bankers ’ speeches the work in drafting the text of the code is well and truly underway. there are two aspects to this. first is harmonisation of the existing regional codes. there is a lot of good material in them and there is no point in reinventing the wheel there. the second part of the work addresses those aspects of the foreign exchange market not adequately covered in the existing codes. we need to fill those gaps ; for instance, in providing more detail around various aspects of order - handling and execution. we are also addressing mark - up and last look. we are aiming to provide language around what it means to participate in the market as principal rather than agent. in these areas we intend to describe what is good practice as well as what is not good practice. while the content of these regional codes is pretty good, it is very evident that they were often ignored, wilfully or otherwise. hence the critical need to come up with mechanisms to achieve greater attention and adherence to the global code. we will have more to say on this later as our work in this area proceeds. at this stage, it is worth reiterating a point i made at an fx week conference in sydney earlier this year in the context of the fx benchmark work : 9 “ if these recommendations were not acted on, authorities could conclude that a regulatory response was necessary to generate the desired improvement in market structure and conduct. ” mark carney made a similar point in his mansion house speech in june, 10 as did simon potter in july. 11 i

york city, 14 july 2015. available at < https : / / www. newyorkfed. org / newsevents / speeches / 2015 / pot150714 >. bis central bankers ’ speeches conclusion as market participants, regardless of which side of the market you are on, it is important that you are aware of the changes that have occurred, and are still underway, in the foreign exchange market. if you are on the sell side, i am sure that you are well aware of these changes and hopefully, i have provided you with some of the background and motivation for them. in terms of benchmarks, there is a fuller articulation of this in the fsb benchmark report. if you are in the asset management business, you may not have paid so much attention to the details of the fx aspect of your business. but it is important that you also understand the context for the changes that are occurring. some practices and services that you were accustomed to in the past, or maybe were unaware of, may no longer be available, and you cannot expect your counterparty to provide them. the motivation for the changes to the foreign exchange benchmarks is to reduce the incentive and opportunity for improper behaviour by market participants around benchmark fixes. the implementation of the recommendations in the fsb benchmark report, together with the enhanced scrutiny externally and within organisations on fixing transactions, appears to have moved the market in a favourable direction. as we develop the single code of conduct for the fx market, the intention is that the market will move further to a more favourable and desirable location and allow participants to have much greater confidence that the market is functioning appropriately. we need this to occur, as it very much in all our interests to have a well - functioning foreign exchange market. as roberto said earlier, we central banks care as much about this as anyone. as it is in all our interests for trust to be restored to the fx market, i very much trust that you, as market participants, will work with us constructively in this important endeavour. bis central bankers ’ speeches