first_imgAccording to the FinansWatch report, Danish pension fund PFA and 12 other investors joined a lawsuit against 16 major international banks accused of manipulating currency prices. Danish pension fund ATP has signed up to the FX Global Code, a scheme created by the Bank of International Settlements (BIS) and central banks outlining ethical practices for trading within the foreign exchange (FX) market.The move came after a series of instances in which investors have sued major international banks relating to their behaviour in the currency markets, according to a report by Danish news service FinansWatch.Jan Ritter, head of hedging and treasury at ATP, said: “Unfortunately, we have seen a number of examples of irregularities in the foreign exchange market, which is inappropriate when we really need to ensure well-functioning exchange activities and high credibility.“For this reason, it makes perfect sense to ATP to contribute to the promotion of these principles for ethical behaviour and support the development of a healthy exchange market.” Source: ATPATP’s office in Hillerød, DenmarkATP, however, has now become the first Danish fund to officially sign up to the FX Global Code.The fund has also become a member of the Scandinavian FX Global Code committee, which comprises of representatives from a number of central banks and investors who meet to discuss issues surrounding the FX market.Apart from setting an example of good behaviour within the market, ATP said it hoped the agreement would help the general functioning of the FX market as a whole, ensuring the best possible prices.“By supporting this initiative, we contribute to positive development in the markets,” Ritter said. “We trade currencies in numerous markets, and we want our business partners to be decent and professional.”ATP uses the currency markets to hedge the Danish krone when investing in foreign equities, among other asset classes.ATP is one of just five market participants now listed on the Global Foreign Exchange Committee’s Global Index of Public Registers as pension funds, alongside Publica, Switzerland’s largest pension investor, which was also admitted in January.The index, which has 872 entries altogether, serves as a central reference point for demonstrated commitment to the FX Global Code.last_img

 Tags: , , , , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *