The Central Bank of Hungary is one of 15 central banks that comply with ECB’s code of conduct for the FX market.
At the end of November 2017, the European System of Central Banks (ESCB) issued a Statement of Commitment to the Foreign Exchange Global Code of Conduct, which the Central Bank of Hungary has resolved to adhere to.
The Code is a significant global initiative to promote a robust, fair, liquid, open and transparent foreign exchange (FX) market underpinned by high ethical standards, which benefits all wholesale FX market participants. FX market participants in each jurisdiction will need to evolve their practices in such a way that they are consistent with the principles of the Code and commit themselves by endorsing the Statement of Commitment to the Code.
The Global Code of Conduct is organised around six leading principles:
- Ethics: Market Participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
- Governance: Market Participants are expected to have robust and clear policies, procedures, and organisational structure in place to promote responsible engagement in the FX Market.
- Information Sharing: Market Participants are expected to be clear and accurate in their communications and to protect Confidential Information to promote effective communication and foster a transparent FX Market.
- Execution: Market Participants are expected to exercise care when negotiating and executing transactions in order to promote a robust, fair, open, liquid, and appropriately transparent FX Market.
- Risk Management and Compliance: Market Participants are expected to promote and maintain a robust control and compliance environment to effectively identify, measure, monitor, manage, and report on the risks associated with their engagement in the FX Market.
- Confirmation and Settlement Processes: Market Participants are expected to put in place robust, efficient, transparent, and risk-mitigating post-trade processes to promote the predictable, smooth, and timely settlement of transactions in the FX Market.