Code of con­duct for cur­rency trad­ing launched

New Straits Times - - Business -

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

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