feedback received. i think it is a good outcome of the process that we were able to distil the points of contention down to a small number of issues. outside of these, the feedback reflected a widely held consensus. market participants have recognised the code ’ s aim of helping move the fx market to a better place. one of our 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. the more prescriptive and the more precise the code, the less people will think about what they are doing. if it ’ s principles - based and less prescriptive then market participants will have to think about whether their actions are consistent with the principles of the code. but we have not written a procedures manual. rather we have articulated principles that need to be taken into account. individual firms may then take these principles and reflect them in their own procedures manuals. our aim in setting out these principles is to provide market participants with the framework in which to think about how they, for example, 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. adherence alongside drafting the code, we have devoted considerable time and effort to thinking about how to ensure widespread adoption of the code by market participants. clearly, that has been an issue with the various existing codes that had been in place in a number of markets. it is evident they were ignored on occasion in the past, wilfully or otherwise. we have worked with the industry to produce a principles - based code 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. we have developed a blueprint for adherence that has been published alongside the code today and sets out the key elements we think will be required for the code to be successful – and the steps that have been taken, and will be taken, to ensure this is the case. 2 / 4 bis central bankers'speeches one critical dimension is market - based adherence mechanisms. an important element of discipline should come from the market itself. the adherence

guy debelle : launch of the fx global code opening remarks by mr guy debelle, deputy governor of the reserve bank of australia, at the launch of the fx global code, fx code press conference, london, 25 may 2017. * * * today marks the culmination of two years ’ effort to develop the fx global code and the associated adherence mechanisms. it has involved considerable input from many foreign exchange market participants, both public and private. today i will reiterate the motivation for the work, highlight the main features of the code and adherence, summarise how we have developed the code and outline the way forward. firstly, why is the work going on? the foreign exchange ( fx ) industry has been suffering from a lack of trust. this lack of trust is evident both between participants in the market and, at least as importantly, between the public and the market. the market needs to move toward a more favourable and desirable location, and allow participants to have much greater confidence that the market is functioning appropriately. the code sets out global principles of good practice in the fx market to provide a common set of guidance to the market. this will help to restore confidence and promote the effective functioning of the wholesale fx market. a well - functioning fx market is very much in the interest of all market participants. this clearly includes central banks, both in their own role as market participants but also as the exchange rate is an important channel of monetary policy transmission. in a globalised world, the foreign exchange market is one of the most vital parts of the financial plumbing. one of the guiding principles underpinning our work is that the code should promote a robust, fair, liquid, open and transparent market. a diverse set of buyers and sellers, supported by resilient infrastructure, should be able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour. the work to develop the code began two years ago, in may 2015, when the bis governors commissioned a working group of the markets committee of the bis ( which i chaired until early january this year ) to do two things : first, establish a single global code of conduct for the wholesale fx market and second, to come up with mechanisms to promote greater adherence to the code. 1 this work is very much a public sector – private sector partnership. we have been ably and vigorously supported by a group of market participants, chaired by david puth, ceo of