The Banque de France’s provision of market expertise
Participation in international working groups
Thanks to its global presence, the Banque de France has developed extensive market expertise that allows it to take part in international working groups and conferences: for example, on FX markets, Asian currencies, gold and collateral markets.
Euro GC+, a secure platform for monetary operations
To secure euro cash funding, enhance interbank liquidity and reduce counterparty risk in the overnight market, the Banque de France has launched EURO GC+ in conjunction with major French banks and two private infrastructure operators (Euroclear and LCH.Clearnet).
Euro GC+ is based on the “repo” principle, where banks accept securities as collateral in exchange for liquidity. It also incorporates two new features:
- use of a central clearing counterparty governed by very strict prudential rules (LCH.Clearnet)
- two euro securities collateral baskets that are standardised and graded by risk to offer participants different risk-return combinations
Euro GC+ adds to Frankfurt’s offering (GC Pooling operated by Clearstream) which uses the central clearing counterparty EUREX4.
FX Global Code, an international code of conduct for FX markets
Global Code is a voluntary code of conduct applicable to all participants in the main global foreign exchange markets. It was developed to promote a robust, fair and transparent market, and covers areas such as ethics, governance, order execution – confirmation and settlement – information sharing and risk management.
Published in May 2017, the code is the culmination of nearly two years of collaboration by central banks and market participants, in which the Banque de France was closely involved. Paris is the leading continental European market place in terms of FX transaction volumes.
Central banks have confirmed their intention to adhere to the code in FX markets – except where it contravenes their fundamental mission. They also expect their regular counterparties in FX markets to adhere to the code.