Assistant governor of the RBA, Guy Debelle, has worked incessantly over the past two years chairing an international committee of investment banks, central banks and institutional investors. Its outcome? 55 principles enshrined into a code of conduct, which was revealed in a press conference on Thursday.
The code of conduct is aimed at regulating the foreign exchange trading market. While not as open to the public like sharemarkets, around $5 trillion in transactions are carried out every day. Companies such as BHP Billiton buy and sell currencies to hedge their products, though others profit from inefficiencies in the market, and can ultimately facilitate the  manipulation of prices.
Unconscionable behaviour has been reduced in this market due to threats of lawsuits and further regulatory action. However, a code of conduct will ensure that banks will not take advantage of their dominant position in the market, and trade in the best interests of their clients.
A global foreign exchange committee will be formed this year to aid in the implementation of this code of conduct. Debelle hopes that both central banks and the 40 institutional foreign exchange players who negotiated the code will sign up to the code.