RBI signs SoC to the FX Global Code

• The Reserve Bank of India has signed a Statement of Commitment (SoC) to the FX Global Code (“Code”).

• The FX Global Code (known as Code) represents a set of principles generally recognized as good
  practice in the wholesale foreign exchange market (“FX Market”).

• As per the SoC, RBI has confirmed that it acts as a Market Participant as defined by the Code and is committed to conducting its FX Market activities (“Activities”) in a manner consistent with the principles of the Code.

• The “Code” is based on six principles, namely:
  • Ethics
  • Governance
  • Execution
  • Information Sharing
  • Risk Management and Compliance
  • Confirmation and Settlement Processes.

• The Code is currently being implemented globally by the Global FX Committee (GFXC) in coordination with the Local FX Committee (LFXC) in each jurisdiction. It was developed by a partnership between central banks and Market Participants from 16 jurisdictions around the globe.

Points to remember:

1. RBI has recently signed SoC for Code. This code deals with which type of market? – foreign exchange market (“FX Market”)- FX Global Code (“Code”)