Code of Conduct coming for foreign exchange trading
Central Bank Governor Brian Wynter says a Code of Conduct is being developed to streamline foreign exchange trading.
Addressing a Jamaica Chamber of Commerce (JCC) forum yesterday, Wynter said the Foreign Exchange Code of Conduct will standardise the interaction between foreign exchange traders and the Central Bank.
He says the document is being drafted by a subgroup of the Foreign Exchange Market Development Committee, which consists of market intermediaries such as banks, authorised dealers and cambios.
The Bank of Jamaica (BoJ) Governor says the final draft, which is expected to be completed in a few months, will be presided over by the central bank.
He explains that all major markets have codes of conduct governing foreign exchange and that a global foreign exchange code of conduct was recently introduced.
Meanwhile, the BOJ Governor explains that B-FXITT, which is a new tool used by the Central Bank to facilitate the buying and selling of foreign exchange, is designed to foster more competitive behaviour among authorised dealers and cambios.
Wynter says the process rewards dealers who provide the best service and the best margins to customers and disadvantages those who do not.
He says B-FXITT mitigates certain issues and levels the playing field for all participants.
With B-FXITT, the BOJ now sells foreign exchange at market-determined rates and provides a more accurate reference rate for its average daily foreign exchange rate.