The National Bank of Hungary (MNB) said Wednesday it has issued a statement of commitment announcing its adherence to the FX Global Code, a set of global principles of good practice in the foreign exchange market, according to state news wire MTI.
The FX Global Code was developed by a partnership between central banks and market participants from 16 jurisdictions around the globe to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market.
According to the MNB, all central banks in the European System of Central Banks (ESCB) are strongly committed to supporting the Code and 15 of them issued commitments on Wednesday.
The MNB said it had reviewed the content of the Code and acknowledges that it represents a set of principles generally recognized as good practice in the wholesale FX market.
"The institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its activities in a manner consistent with the principles of the Code," said the central bank. "The purpose of the Code is to promote a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behavior. "
The MNB noted that the Code does not impose legal or regulatory obligations on participants, nor does it substitute for regulation, but rather is intended to serve as a supplement to any and all local laws, rules and regulations.