UK FCA Confirms Recognition of Revised Global FX and Precious Metal Codes

The Financial Conduct Authority (FCA) has officially confirmed recognition of the revised FX Global Code (FX Code) and the Global Precious Metals Code (PM Code).

Maintained and updated by the Global Foreign Exchange Committee (GFXC), the FX Code sets principles of good practice standards for the global foreign exchange market, promoting the integrity and effective functioning of the wholesale FX market.

The PM Code is maintained and updated by the London Bullion Market Association (LBMA), setting out principles to promote the integrity and effective functioning of the global precious metals market.

"Individuals subject to the Senior Managers and Certification Regime (SM&CR) need to meet requirements for market conduct, for both regulated and unregulated activities,"the regulator stated."The FCA expects firms and individuals to consider both the spirit and letter of code provisions to make sure they fully meet proper standards of market conduct".

"More broadly, those who are signatories to the FX and PM Codes, will need to make clear and transparent disclosures to market users to explain how their orders will be handled,"the watchdog continued.

Last week, the FCA announced that it will allow the temporary use of 'synthetic' sterling and yen LIBOR rates in all legacy LIBOR contracts that have not been changed at or ahead of end-31 December 2021.