andrea m. maechler news conference new code of conduct for global foreign exchange market transactions that brings me to the new global code of conduct for foreign exchange market transactions known as the fx global code. published at the end of may, this new code aims to define clear rules of conduct for all those transacting business on the foreign exchange markets, with a view to enhancing efficiency. a well - functioning foreign exchange market is in the interests of all market players, not least the central banks. various central banks, including the snb, have therefore been working alongside private sector partners to draft the fx global code. the code of conduct affects all foreign exchange market activities – from communications with market participants to risk management and the execution of transactions. as a global set of rules, the new code replaces all existing codes of conduct for foreign exchange markets and, as such, establishes clear and uniform guidelines. it should be noted that the fx global code applies not just to market participants, but to market infrastructure providers as well ; it thus encompasses all relevant foreign exchange market actors. while the fx global code is classified as self - regulation, the snb expects its regular counterparties to implement the new code and to abide by the agreed rules. page 3 / 5 berne, 15 june 2017 andrea m. maechler news conference page 4 / 5 berne, 15 june 2017 andrea m. maechler news conference page 5 / 5

news conference berne, 15 june 2017 andrea m. maechler introductory remarks by andrea m. maechler i will begin by reviewing the situation on the international financial markets. i will then address some developments on the swiss money and foreign exchange markets – specifically the establishment of saron as the leading reference rate for interest rate derivatives and the adoption of a global code of conduct for foreign exchange market transactions. situation on the financial markets let me start with developments on the international financial markets. overall, positive sentiment has continued to prevail since the beginning of the year. economic conditions have provided favourable momentum, with data pointing to ongoing recovery in both europe and the us. furthermore, companies on both sides of the atlantic reported solid profits in the first quarter. the principal beneficiaries of these developments have been the equity markets, both in the advanced and the emerging economies ( cf. chart 1 ). various major equity indices have repeatedly recorded historical highs in the year - to - date period. while the smi has not yet hit its historical high, it too made substantial gains and recently closed up 8 % on the beginning of the year. heightened political uncertainty has had no lasting effects on the equity markets. this assertion is borne out in risk perception metrics. volatility derived from option prices ( implied volatility ) once again fell substantially. on the us equity market, volatility approached historical lows at times in may and june ( cf. chart 2 ). heightened political uncertainty has, however, occasionally left its mark on the bond and foreign exchange markets. for instance, demand for highly rated government bonds has remained strong since the start of the year. in addition, despite largely positive economic data, the inflation outlook for the major advanced economies is still muted. as a result, yields on highly rated government bonds have changed only marginally since the beginning of 2017 page 1 / 5 berne, 15 june 2017 andrea m. maechler news conference and have remained low ( cf. chart 3 ). in switzerland, too, the yield on ten - year confederation bonds has remained essentially unchanged. on the foreign exchange market, the swiss franc experienced repeated episodes of upward pressure as a result of heightened political uncertainty in europe. the elections in the netherlands and france, as well as the uk ’ s upcoming brexit negotiations with the eu, generated increased demand for currencies considered particularly safe by investors. after the presidential election in france, the euro strengthened and pressure on the