Eurizon Capital SGR has adhered to the “FX Global Code of Conduct”, (available at this address: https://www.globalfxc.org/fx_global_code.htm), a set of global principles of good practice in foreign exchange spot and forward operations, to promote the integrity and the effective functioning of the wholesale foreign exchange market.
The purpose of the Code is to promote the development of a robust, fair, liquid, open and appropriately transparent market, in which a diverse set of Market Participants – including asset managers – are able to transact effectively and in respect of confidentiality, at competitive prices that reflect available market information, and in a manner that conforms to shared standards of behaviour.
Therefore, adhesion to the Code represents an element of convergence for the diverse set of FX Market participants (sell-side and buy-side, non-bank liquidity providers, operators of e-trading platforms, and other entities providing brokerage, execution and settlement services) in carrying our their trading activities and in developing internal procedures.
The Global Code is articulated over 55 “best practices”, organised around the following six “leading principles”:
- Ethics: Market Participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the FX Market.
- Governance: Market Participants are expected to have a sound and effective governance framework to provide for clear responsibility and comprehensive oversight of their FX Market activity, and to promote responsible engagement in the FX Market.
- Execution: Market Participants are expected to exercise care when negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX Market.
- Information sharing: Market Participants are expected to be clear and accurate in their communications and to protect Confidential Information to promote effective communication that supports a robust, fair, open, liquid and appropriately transparent FX Market.
- Risk management and compliance: Market Participants are expected to promote and maintain a robust control and compliance environment to effectively identify, manage, and report on the risks associated with their engagement in the FX Market.
- Confirmation and Settlement Processes: Market Participants are expected to put in place robust, efficient, transparent, and risk-mitigating post-trade processes to promote the predictable, smooth, and timely settlement of transactions in the FX Market.
By adhering to the FX Global Code of Conduct, Eurizon Capital SGR has aligned its internal processes, that discipline activity on the FX Market on behalf of its clients – in terms of both spot and forward transactions – with the principles of the FX Global Code of Conduct.