Code of conduct for currency trading launched
LONDON: Regulators and leading financial firms launched a new code of conduct for global currency trading yesterday, including measures aimed at forcing its universal adoption by the world’s major financial institutions.
Industry players said the code was its last chance to head off full formal regulation of the US$5 trillion (RM21.4 trillion) a day market after a scandal over market manipulation that saw seven major banks fined around US$10 billion in 2015.
Most of the document was published a year ago and the final version’s main additions include measures that ask banks and a new generation of electronic traders to provide more details on the algorithms they use and their trading processes.
It also addresses and launches a formal consultation over the controversial “last look” practice that allows banks and other liquidity providers an extra chance to reject trades after receiving requests to execute. Reuters