guy debelle : fx global code keynote address by mr guy debelle, deputy governor of the reserve bank of australia, at fx week usa, new york city, 11 july 2019. * * * thanks to matt boge for all his assistance. today i will talk about the fx global code. 1 i will talk about where we ’ ve come from and where we are going. the code was first published a little over two years ago in may 2017. it is important to remember why the code was needed and why it was produced. why was the code necessary? the foreign exchange ( fx ) industry was suffering from a lack of trust and dysfunction. the public lost trust in the market through the front - page coverage of the scandals that hit the market and the billion dollar fines. this lack of trust was there between participants in the market which was impairing market functioning. the market had to move toward a better place and allow market participants, and the public, to have much greater confidence that the fx market is functioning appropriately. it is also important to remember what the alternative was in the aftermath of the scandals. there was a decent chance that authorities could conclude that a regulatory response was necessary to generate the desired improvement in market structure and conduct. but the code provided the opportunity for a joint public / private sector approach to address the lack of trust and market dysfunction. the code is not regulation. the code sets out global principles of good practice in the fx market to provide a common set of guidance to the market. its aim is to promote the effective functioning of the wholesale fx market. how have we gone on that? in my view the fx market is in a better place than it was a few years ago. that is confirmed by surveys of market participants too. but there is further progress to be made. the process for creating the code was global, coordinated between central banks and the private sector. i was the chair of the group that produced the code, with the great assistance of david puth who led the market participants. at the time the code was launched, a global foreign exchange committee ( gfxc ) was created to maintain the code. i have just been appointed as gfxc chair, taking over from simon potter who did a great job of leading the gfxc and over a number of years has been a major driver of change for the better in the global fx market. the gfxc is a genuinely global committee and the breadth of its reach

27 / 07 / 2020 the reserve bank's operations – liquidity, market function and funding | speeches | rba speech the reserve bank's operations – liquidity, market function and funding christopher kent [ * ] assistant governor ( financial markets ) address to kanganews online – 27 july 2020 introduction in the early stages of the pandemic, there was extreme uncertainty about how much economic activity would decline and how long the economic disruption would last. it was also uncertain how much support would be provided by monetary and fiscal authorities. and so, as the virus spread around the world through early march, extreme uncertainty and the prospect of a sizeable decline in economic activity was reflected in financial markets globally. in particular, there was a sharp rise in the volatility of asset prices, a decline in the prices of risky assets, and before too long, dislocation in a number of key financial markets ( graph 1 ). most notable were the problems affecting government bond markets, which are critical to the pricing and operation of financial markets more broadly. australia was no exception. https : / / www. rba. gov. au / speeches / 2020 / sp - ag - 2020 - 07 - 27. html 1 / 14 27 / 07 / 2020 the reserve bank's operations – liquidity, market function and funding | speeches | rba graph 1 these conditions underpinned a general rush for liquidity, including by banks and other financial institutions. more generally, investors in a wide range of financial markets also sought to shore up their liquidity and reduce their exposures to riskier positions. in reaction to this increase in the demand for liquidity around the world, central banks increased the supply of liquidity as part of a broader policy response to support their economies ( graph 2 ). they provided that liquidity initially by scaling up their open market operations. central banks also bought government bonds in secondary markets. they did this with a view to restoring more normal functioning in those markets, but it also had the effect of providing additional liquidity to those selling the bonds. furthermore, a number of central banks started new facilities, or extended existing ones, to provide longer - term funding to banks at favourable rates. https : / / www. rba. gov. au / speeches / 2020 / sp - ag - 2020 - 07 - 27. html 2 / 14 27 / 07 / 2020 the reserve bank's operations – liquidity, market function and funding | speeches | rba