Small Exchange: Global code of conduct, Singaporean scams and UK FX turnover
The week's currency news rounded up.
New global code of conduct for FX market
The world's largest central banks, together with a group of foreign exchange market participants, will draft principles for an official code of conduct to guide the $5 trillion-a-day industry, the AFR reports.
CLS Bank International CEO David Puth, who is also chairman of the committee developing the code, said the rules would be self-enforced by traders and encourage transparency among banks.
"If there is a client or liquidity provider operating in a way that is working against the code, my expectation is people will stop dealing with them," Puth said.
The Bank for International Settlements said the code will officially be released on May 25, 2017.
Singaporean woman arrested for forex scam
A 56-year-old woman implicated in two different foreign exchange currency scams has been arrested in Singapore, the Straits Times reports.
The woman allegedly offered her victims excellent exchange rates, met them, handed over a fraction of the agreed amount and requested they transfer what they owe to her bank account.
Afterwards, she ceased all communications.
The woman was charged with cheating, which carries a fine and a maximum jail sentence of 10 years.
United Kingdom FX volumes up but struggling
London's Foreign Exchange Joint Standing Committee (FXJSC) released the results of its semi-annual foreign exchange (FX) turnover survey, which tracks twenty-nine London banks.
For the month ending October 2016, average daily volumes were 2% lower than in April 2016. However, this decline was offset by a 3% year-on-year rise since October 2015.
FX spot volumes have fallen 8% since April 2016, while most other FX products saw slight increases.
The average daily UK FX turnover was $2.18 trillion in October last year.
The report also found London retains around 40% of the global market share of all FX activity.
Each week Small Exchange sums up currency news from around the globe and looks at how it impacts exchange rates and options.