Bank Negara to launch code of conduct for wholesale money, forex markets

KUALA LUMPUR: Bank Negara is expected to unveil a new code of conduct for the Malaysian wholesale money and foreign exchange (forex) markets by January next year to enhance the professional and ethical standards of financial industry.

According to governor Datuk Muhammad Ibrahim, the consultation paper on the new code for the wholesale money and forex markets, which was launched on Monday, would undergo a one-month period of gathering feedback from industry players before being finalised and launched early next year.

“After one month (of consultation with industry players), we will look at the concept, and by early January, it will be ready,” Muhammad told reporters after delivering a special address at the signing ceremony of the collaboration agreement between the Asian Institute of Chartered Bankers (AICB), Financial Markets Association of Malaysia (FMAM) and the Asian Banking School (ABS) in Kuala Lumpur on Monday.

In his speech, Muhammad said the proposed new code of conduct would be adopted by the industry and would scope all activities within the foreign exchange and money markets 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 and broking systems that deal in the wholesale financial markets as well as interbank players in the bond markets,” he said.