*  GUIDING PRINCIPLES FOR CONDUCT IN THE CANADIAN FOREIGN EXCHANGE MARKET

The Canadian Foreign Exchange Committee (CFEC) first issued guidelines for professional conduct in the Canadian foreign exchange market in 1990. Given the evolution of the global foreign exchange market, the regulatory environment, and the general application of market conduct standards within each organization, the endorsement of a single code of conduct was assessed by CFEC as no longer appropriate. Effective 9 December 2013, CFEC has adopted Guiding Principles for Conduct in the Canadian Foreign Exchange Market consisting of two elements: 1) the five principles embedded in the global statement that was published by CFEC on 29 May 2013 (Codes of Best Market Practice and Shared Global Principles)1, and 2) a commitment to take into account relevant regulations and reference codes.

Consequently, CFEC members agree to have policies and procedures in place to:

  • develop and promote a strong culture of ethical behaviour and standards of conduct;
  • promote awareness and use of general dealing practices, procedures and conventions;
  • ensure accurate and timely pre-trade preparation and trade capture;
  • support robust and efficient back office operations including confirmation, netting, payment and settlement; and
  • mitigate risk in foreign exchange transactions from the point of execution to settlement.

Members also agree that the following references, as appropriate, are taken into account in the determination of internal codes. Note that these include specific requirements of the prudential regulator of Canadian CFEC member banks. The list of documents will be periodically reviewed by CFEC to ensure that the references remain current and, in particular, reflect relevant developments in foreign exchange markets.

Reference documents and links:

Basel Committee on Banking Supervision

Office of the Superintendent of Financial Institutions (OSFI)

Other FX Codes of Conduct


1.The principles in the global statement and published on the CFEC website were prepared and individually endorsed by CFEC as well as foreign exchange committees in several other jurisdictions.




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