The European Central Bank (ECB) has been given the lead role in work to strengthen codes of conduct for global currency markets, Reuters reported Monday, citing banking industry sources.
Work on new standards has become a priority after a meeting in Sydney last month which brought together eight central bank committees charged with monitoring the forex market, the report said.
The meeting followed a fraught 12 months for the global currency market, which saw more than 40 dealers fired or suspended following claims that senior bankers used client order information improperly to manipulate prices.
Pressure is growing for more radical action to head off any wrongdoing. But Reuters cited its sources as saying that anything along these lines would probably not come until after the first results from various investigations underway around the globe.
The Financial Stability Board, the global regulatory body, is due to publish its initial findings on currency benchmarks within weeks. The group that met in Sydney — the Global Foreign Exchange Committees — is separate to the FSB, but the participants are very similar.
Giving the ECB the coordinating role in looking at codes of conduct puts control of the process outside of the world’s biggest currency trading centers in London and New York, the report noted.
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