ACI 2012 Press Release / Events
New FX Best Practices in Operations launched at the ACI World Congress in Dubai 2012

FX Practices in Operations was developed by a team led by Andreas Gaus, member of the ACI Board of Education and Chairman of the European Central Bank Operations Management Group (OMG), who reviewed the Bank of England Non-Investment Products (NIPS) Code, the Federal Reserve Bank’s 60 Best Practices and the ECB’s OMG documents, among other documents, which were then formulated and updated to create a new benchmark.

The team reviewed the above documents, and ISDA’s documents as well as the existing ACI Model Code’s chapter on Operations, and produced a newly formulated benchmark of FX Best Practices in Operations. The team was comprised of individuals from Banque de France, CECA, Goldman Sachs, UBS, Banco de Portugal, Nordea, Dexia, Deutsche Bundesbank, HSBC, Credit Suisse and Citi Bank. An external review was provided by Central banks and numerous Global Operations Managers from the Operations Committees of the Reserve Bank of Australia, the Monetary Authority of Singapore (MAS), the Bank of Japan, the US Federal Reserve System (FED), the Bank of England, and many other banks and professionals

The launch of the finalised work was ready on March 24, 2012 following the Annual General Assembly of ACI, the Financial Markets Association in Dubai at the ACI World Congress 2012. David Woolcock, Chairman of the Committee for Professionalism (CFP) commented: ‘The team has done a tremendous job over the past months. FX is the world’s largest financial market, and thus it is essential to have ‘self-regulating’ guidelines, building on ACI’s experience, in place. The CFP will now incorporate the new FX Practices in Operations into the existing ACI - The Model Code at the end of August.’

‘ACI’s The Model Code has been compiled in response to an international need amongst dealers and brokers operating in the OTC (over-the-counter) foreign exchange, money and derivatives markets. In 1975 the first ACI Code of Conduct was published covering foreign exchange and euro-currency dealing. The present update “FX Best Practices in Operations” will bring up-to-date recent market developments from a fragmented landscape of various documents, add new market practices and become a new global benchmark’, says Manfred Wiebogen, President of ACI. ‘The creation follows ACI’s intention to support smooth and

harmonized markets as exemplified in its slogan ... since 1955 balancing the financial markets.’

The new FX Best Practices in Operations

84 FX Best Practices in Operations have been up-dated or re-defined. The findings will be implemented into The ACI Model Code Chapter in Operations and also into the Certification program – ACI’s worldwide benchmarking and training programme.

The baskets covered in the new chapters are:

1. Best Practice for Confirmations
2. Best Practice for Settlement targeting being Prompt and Accurate
3. Best Practice with regard to Reconciliations
4. Best Practice for the General Setup of Controls
5. Best Practice with regards to Electronic Trading

ACI The Model Code: click here for PDF version

FX Best Practices Operations / New Chapters: click here for PDF version

ACI Press Release - Paris / Zurich / Vienna, 10 May 2012 Download PDF