NY Fed Executive Urges Universal Adoption Of FX Global Code

Federal Reserve Bank of New York ("NY Fed") Executive Vice President Simon Potter urged all foreign exchange market participants to adopt the FX Global Code (the "Code"), a set of best-practice principles for operating within foreign exchange markets (see previous coverage). Mr. Potter remarked that while his views were not necessarily those of the NY Fed, his "remarks on the expectations for FX counterparties reflect the policies of the [NY Fed]."

At the 2017 FX Week Conference in New York City, Mr. Potter outlined the Code's focus on six key areas: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement.

Mr. Potter stated that while the Code is not a binding set of rules, there is an expectation that regulatory authorities and industry participants will promote widespread adoption, not just by FX dealers, but also by "regional banks, asset managers, and corporations, to hedge funds, high frequency