ACI FX Global Code Practice Exam
ACI FX Global Code Practice Exam
About the ACI FX Global Code Exam
The ACI FX Global Code Exam is designed to assess the knowledge and understanding of the FX Global Code, a set of global principles of good practice in the foreign exchange (FX) market. This exam covers critical areas such as ethics, governance, risk management, and execution within the FX market, ensuring that candidates are well-versed in the standards that promote a robust, fair, liquid, open, and appropriately transparent market. Candidates will demonstrate their ability to adhere to the principles of the FX Global Code, contributing to the integrity and effectiveness of the FX market.
Who should take the Exam?
This exam is ideal for:
- FX traders, sales professionals, and market participants involved in the foreign exchange market.
- Compliance officers and risk managers in financial institutions with FX operations.
- Treasury and finance professionals responsible for FX transactions and management.
- Students and professionals aspiring to work in the FX market and seeking to demonstrate their commitment to ethical practices.
Skills Required
- Thorough understanding of the FX Global Code principles and their application.
- Knowledge of ethical standards and conduct in the FX market.
- Risk management and governance skills in the context of FX operations.
- Familiarity with market practices, execution, and communication standards in FX.
Knowledge Gained
By taking the ACI FX Global Code Exam, candidates will gain comprehensive knowledge in the following areas:
- Mastery of the FX Global Code and its importance in maintaining market integrity.
- Skills in identifying and managing risks associated with FX trading and transactions.
- Understanding of the ethical and governance standards required in the FX market.
- Ability to apply best practices in execution, communication, and compliance within the FX market.
Course Outline
The ACI FX Global Code Exam covers the following topics -
Introduction to the FX Global Code
- Overview of the FX Global Code: origins, purpose, and key principles.
- The role of the FX Global Code in promoting market integrity and ethical behavior.
- Importance of adherence to the code for market participants and institutions.
Ethics and Conduct in the FX Market
- Principles of ethical behavior and professional conduct in FX.
- Identifying conflicts of interest and managing ethical dilemmas.
- Case studies on ethical breaches and their impact on the FX market.
Governance and Risk Management
- Governance structures and their role in ensuring compliance with the FX Global Code.
- Risk management frameworks for FX trading and operations.
- Techniques for identifying, assessing, and mitigating FX-related risks.
Execution Practices and Standards
- Best practices for trade execution in the FX market.
- Understanding different execution methods: electronic, voice, and algorithmic trading.
- Ensuring transparency, fairness, and efficiency in trade execution.
Market Conduct and Communication
- Standards for communication in the FX market, including disclosure and transparency.
- Handling confidential information and preventing market manipulation.
- Guidelines for market participants’ interaction and communication.
Compliance and Monitoring
- Role of compliance in upholding the FX Global Code.
- Techniques for monitoring adherence to the code within institutions.
- Procedures for reporting and addressing breaches of the FX Global Code.
