Danmarks Nationalbank uses a number of active market participants as counterparties in our intervention transactions in the foreign exchange market to ensure a fixed krone exchange rate against the euro. Danmarks Nationalbank continuously assesses how many counterparties we need to maintain the fixed exchange rate policy.
Criteria for assessing counterparties
The basic criteria for Danmarks Nationalbank’s assessment of counterparties in krone foreign exchange transactions are:
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Active market participant and sufficient current turnover in the foreign exchange market for kroner.
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Reporting of krone currency turnover on a daily basis (spot, forward and options) as well as foreign exchange and money market statistics reporting (FXMMSR).
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Signing of ISDA and CSA agreements with Danmarks Nationalbank.
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Compliance with Danmarks Nationalbank’s practice in force at any time for the settlement of foreign exchange transactions.
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Compliance with the principles of the FX Global Code.
FX Global Code: Principles of good practice
The FX Global Code is a set of global principles of good practice in the foreign exchange market. The principles have been developed to provide a common set of guidelines that promote the integrity and effective functioning of the foreign exchange market.
The principles aim to promote a robust, fair, liquid, open and transparent market in which a diverse set of market participants, supported by a robust infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour.
The FX Global Code does not impose legal or regulatory obligations on market participants nor does it substitute for regulation, but rather it is intended to serve as a supplement to any and all local laws, rules and regulation by identifying global good practices and processes.
Participation in the Scandinavian Foreign Exchange Committee (SFXC)
Danmarks Nationalbank participates in the Scandinavian Foreign Exchange Committee (SFXC) together with Sveriges Riksbank, Norges Bank and market participants with a prominent role in the Scandinavian foreign exchange markets.
The SFXC discusses topics related to the FX Global Code as well as current issues in the foreign exchange market. In addition, the SFXC is a member of the Global Foreign Exchange Committee.
Agendas and minutes for the meetings in SFXC will be published here.
November 13th 2024
September 9th 2024
May 23th 2024
September 26th 2023
May 9th 2023
October 24th 2022
May 18th 2022
October 26th 2021
March 10th 2021
September 30th 2020
November 12th 2019
May 14th 2019
November 20th 2018
June 4th 2018