Bank Negara to announce new code of conduct for wholesale money & forex markets

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KUALA LUMPUR (Oct 31): Bank Negara Malaysia (BNM) will be announcing a new code of conduct for wholesale and foreign exchange (forex) markets by early January.

"The consultation will be 30 days. After that, we will look at it and finalise it...normally by early January," BNM governor Datuk Muhammad Ibrahim told reporters.

Earlier, the governor said the central bank is launching a consultation paper on a new code of conduct for Malaysia wholesale and forex markets today.

"We invite comments from the public, including corporations that may deal in the wholesale financial markets," he said in a special address at the collaboration agreement signing ceremony, between the Asian Institute of Chartered Bankers, ACI-Financial Markets Association of Malaysia (FMAM) and the Asian Banking School (ABS).

According to the governor, this code of conduct will be adopted by the industry and will scope all activities within the forex and money market, as well as activities of regulated entities in other markets.

"Hence, the code of conduct will be applicable to fund management companies, corporations and providers of electronic trading or broking systems that deal in the wholesale financial markets, as well as interplayers in the bond markets," he added.

The code of conduct will set out clear principles and standards to be observed by market participants and lays out the role of industry associations in preserving market order and stability, according to him.