FMSB is practitioner led and operated by the major participants in wholesale markets.
Our members are active international users of FICC markets and include corporate issuers, asset managers, exchanges, custodians and intermediaries, commercial and investment banks, and the firms that provide the infrastructure for markets to operate, such as data providers, trading venues, exchanges and other platforms.
We are unique in bringing together this breadth of market participants to develop Standards and Statements of Good Practice aimed at raising standards of behaviour, competence and awareness to promote the fairness and effectiveness of wholesale markets.See FMSB publications >
News & Publications
A short round-up of the most recent activity from the FMSB.
17 December: We published a Statement of Good Practice for Trading Platform Disclosures Transparency Draft. This Statement of Good Practice aims to promote consistency of key information disclosures as to how platforms operate irrespective of their regulatory classification and builds on certain existing regulatory requirements and policy initiatives impacting platform operators and users, including relevant aspects of MiFID II and the FX Global Code. Such requirements and initiatives relate to both the operation and governance of Trading Platforms, and the obligations on Trading Platform participants.
FMSB invites comments on the proposals in this Statement of Good Practice by 25 February 2022.
18 November: Read the Spotlight Review ‘Precious Metals Market Structure’ which examines the existing structure of the precious metals market and makes a number of overarching observations as to how the market structure could evolve in order to promote fairness and effectiveness. In relation to each of these observations, the Spotlight Review considers the benefits that such changes could bring as well as the hurdles to implementation. We also issued a press release.
18 November: We are pleased to welcome Westpac Banking Corporation as a Full Member of FMSB. We have a full agenda for 2022 and look forward to working with Westpac on various topics in the pursuit of strengthening trust in wholesale FICC markets.
11 November: We are pleased to welcome Santander CIB as a Full Member of FMSB. We look forward to working with them on various topics in the pursuit of strengthening trust in wholesale FICC markets.
9 November: A Memorandum of Understanding (MoU) has been agreed between FMSB, the Bank of England and the Financial Conduct Authority setting out a high-level framework formalising the continuing cooperation between the three parties. Read our press release for more details.
12 October: We published a Transparency Draft of the Standard for the Conduct of Participants in LBMA Precious Metal Auctions. This Standard is designed to provide some clarity as to the way in which regulatory and conduct risks associated with: (i) sourcing liquidity through an auction process which sets the LBMA Precious Metal Price; or (ii) managing both ‘Client Orders’ and ‘House Orders’ in the LBMA Auctions, can be managed, so as to increase the volume of bids and offers submitted to LBMA Auctions and improve the quality of price discovery resulting from them, thereby improving the effectiveness of the market.
FMSB members and other interested parties are invited to comment on the proposed Standard. This consultation will run until Friday 3 December 2021.
30 September: Read the Spotlight Review ‘Hybrid working in FICC markets – Future risk management frameworks’ which examines a number of key benefits and potential conduct risks associated with the adoption of hybrid working models in FICC markets and considers how firms may look to adapt their risk management frameworks in light of such risks. We also issued a press release.
28 July: We published the final Standard on the use of Term SONIA reference rates and an accompanying press release. The Standard identifies where there may be robust rationales for the use of Term SONIA in the loan, bond and derivatives markets and sets out certain expected behaviours of markets participants when using or issuing Term SONIA products in light of the reduced systemic and conduct risks associated with overnight risk-free rates.
7 June: FMSB appoints Myles McGuinness as its Chief Executive Officer. Read our Press Release for more details.
11 May: Andrew Bailey made reference to FMSB’s work in a speech today at the Alternative Reference Rates Committee’s ‘SOFR Symposium: The Final Year’ about the move away from the use of LIBOR – Descending safely: Life after Libor – speech by Andrew Bailey | Bank of England.
6 May: We published a final Standard for the execution of Large Trades in FICC markets. This Standard was published as a Transparency Draft on 15 December 2020, and the final Standard incorporates a small number of changes and additions resulting from comments received during the Transparency Draft period. We also published a press release.
27 April: We are pleased to welcome Mizuho International plc as an Associate Member of FMSB. We look forward to working with them on various topics in the pursuit of strengthening trust in wholesale FICC markets.
20 April: Read the FMSB Spotlight Review ‘LIBOR transition: Case studies for navigating conduct risks in back book transition’ which examines certain risks to market fairness and effectiveness that might arise when transitioning existing LIBOR-based contracts with maturities extending beyond end-2021 to alternative risk-free rates. We also issued a press release.
26 March: The Prudential Regulation Authority and FCA‘s Dear CEO letter on Transition from LIBOR to Risk Free Rates states that firms should take into account FMSB’s recent Standard on use of Term SONIA reference rates in selecting benchmarks for use in their products.
24 March: We published a Transparency Draft of the Standard on the use of Term SONIA reference rates and an accompanying press release. The Standard identifies where there may be robust rationales for the use of Term SONIA in the loan, bond and derivatives markets and sets out certain expected behaviours of markets participants when using or issuing Term SONIA products in light of the reduced systemic and conduct risks associated with overnight risk free rates.
FMSB members and other interested parties are invited to comment on the proposed Standard. This consultation will run until Friday 28 May 2021.
1 March: FMSB appoints Ed Davey as Chief Operating Officer. Read our Press Release for more details
11 February: Following on from the progress that has been made in the FMSB Metals Working Group, which was set up in mid-2019, we are pleased to welcome the World Gold Council as a Partner Member of FMSB. The FMSB Metals Working Group, which is chaired by the World Gold Council’s CEO, David Tait, is continuing its work on developing a Spotlight Review examining the structure of the precious metals market, and has also commenced work on a Standard relating to the provision of liquidity at LBMA auctions, both of which we hope to publish later this year.
11 January: The draft Standard currently being developed by the FMSB Term Rates Working Group is referred to in the Priorities and Roadmap update published by the Working Group on Sterling Risk-Free Reference Rates. Further information can also be found in the Bank of England News release published today.
15 December: We published a Transparency Draft of the Standard for the execution of Large Trades in FICC markets. This Standard seeks to establish principles for how market participants should behave in relation to the execution of Large Trades between dealers and clients. The Standard adopts a subjective definition of Large Trades, acknowledging that what constitutes a Large Trade will vary by markets, product, time period, geography and other factors that could impact liquidity. The Standard sets out ten Core Principles focusing on communications between dealers and clients in relation to the execution of a Large Trade, guidelines for the pre-hedging of Large Trades and establishing clear expectations with regard to client confidentiality given the potentially heightened impacts of information leakage in the context of Large Trades.
FMSB members and other interested parties are invited to comment on the proposed Standard. This consultation will run until Tuesday 16 March 2021.
15 December: We published a Transparency Draft of the Standard for the sharing of investor allocation information in the fixed income primary markets. This Standard describes the role of syndicate banks in the allocation of fixed income securities in the primary markets and the rationale for, and potential benefits to different market participants of, sharing investor allocation information. The Core Principles in the Standard set out certain expected behaviours of syndicate banks relating to the sharing of investor allocation information for new issuances in fixed income primary markets on the day of pricing within their institutions. FMSB members and other interested parties are invited to comment on the proposed Standard. This consultation will run until Tuesday 16 March 2021.
7 September: Read the FMSB Spotlight Review ‘Measuring execution quality in FICC markets’ which considers the challenges to measuring and evidencing trade execution, and explores the root cause of these challenges, highlights the progress made in regulation and market participants’ practices with regard to data reporting and best execution, and sets out key points of focus for firms in navigating these difficult waters. We also issued a press release.
3 August: Read the FMSB Spotlight Review ‘Monitoring FICC markets and the impact of machine learning’ which considers structural and technological changes in market surveillance, in particular the emergence of machine learning trading strategies, and sets out some of the challenges associated with these developments for surveillance teams in FICC markets. The review examines the role of technology as a potential solution to these challenges, creating as it does opportunities to improve market surveillance through the application of machine learning.
We also issued a press release.
27 July: Read the FMSB Spotlight Review ‘Examining remote working risks in FICC markets’ and risk register that includes 47 entries with example control and mitigation measures aimed at assisting market practitioners when conducting their own risk assessments. We also issued a press release.
18 July: Listen to ‘In the FICC of it’ where Martin Pluves, FMSB CEO, speaks to Colin Lambert, Profit & Loss’s managing editor, where they discuss FMSB’s recent paper on algorithmic governance, and upcoming work on large trades for FICC markets, and behavioural conduct analysis.
14 July: We published a final ‘Statement of Good Practice for Participation in Sovereign and Supranational Auctions in Fixed Income Markets’.
This Statement of Good Practice describes the way in which sovereign and supranational auctions are typically conducted in Europe, the roles Market Participants in those auctions play, the types of auction structure, orders and transaction types that are often utilised, and the different conflicts of interest that can arise for such Market Participants.
It sets out eight Good Practice Statements relating to the management of those conflicts and certain other matters relevant to the conduct of participants in and around such auctions.
26 June: We announced Appointments to the FMSB Limited Board.
24 June: We published a Transparency Draft of ‘Algorithmic trading in FICC markets: Statement of Good Practice for FICC market participants’ and an accompanying press release. This Statement of Good Practice sets out 10 Good Practice Statements which cover the governance of, and management of conduct risks associated with, the use of algorithmic trading. FMSB members and other interested parties are invited to comment on the proposed Statement of Good Practice. This consultation will run until Friday 21 August 2020. [Note: Transparency Draft retired in March 2021]
11 June: Read the FMSB Spotlight Review ‘LIBOR transition: Case studies for navigating conduct risk’ published today. This paper includes good practice observations and practical case studies to support firms when considering the risks to fairness and effectiveness as the market moves to risk-free rates as more sustainable and representative benchmarks. We also issued a press release.
11 May: Read the FMSB Spotlight Review ‘The critical role of data management in the financial system’ published today which examines the crucial role of data management in the stability and resilience of wholesale FICC markets and financial systems. We also issued a press release.
23 April: Read the FMSB Spotlight Review ‘Emerging themes and challenges in algorithmic trading and machine learning’ published today which highlights important emerging issues to assist market participants in considering how to address challenges that may arise. We also issued a press release.
15 April: Read ‘Why is the FMSB so important to corporate treasurers?’ – an article in The Treasurer that looks at FMSB’s standard setting work and asks CEO Martin Pluves what’s in it for corporates.
17 March: Listen to ‘In the FICC of it’ where Mark Yallop, FMSB Chair, speaks to Colin Lambert, Profit & Loss’s managing editor, about recent developments in fixed income markets.
3 March: Mark Yallop, FMSB Chair, gave a speech ‘Disrupting Markets, Disrupting Money, Disrupting Finance’ on 28 February 2020 at the 2020 IOSCO Stakeholder Meeting.
11 February: FMSB appoints Christopher Rich as General Counsel. Read our Press release,11 February 2020 for more information
23 December: ‘Machine learning: the big risks and how to manage them’ – an opinion editorial by Mark Yallop, FMSB Chair was published in the Financial Times (subscription may be needed).
03 December: Mark Yallop, FMSB Chair, gave speeches on ‘Behaving Fairly: Artificial Intelligence and Conduct in Wholesale Markets’ in Italy and Canada – see Speeches.
02 December: We published a Transparency Draft of ‘Statement of Good Practice for Participation in Sovereign and Supranational Auctions in Fixed Income Markets’ (SGP) and a Press release. The SGP applies to primary dealers, dealers and investors in the wholesale fixed income markets who participate in pre-announced multi-lateral auctions and reverse auctions conducted by issuers of government and supranational bonds in Europe (but subject to any applicable local regulatory restrictions). The comments period closed on Monday 27 January 2020.
14 November: Martin Pluves, FMSB CEO, gave a speech ‘Halting the wholesale markets breach, reform and repeat cycle: addressing conduct risk through practitioner-led standards’ at the 5th Annual Culture and Conduct Forum for the Financial Services Industry organised by City & Financial Global.
Martin referred to FMSB’s ‘Behavioural Cluster Analysis: Misconduct Patterns in Financial Markets’. If you would like a copy, please send your name and full postal address to firstname.lastname@example.org.
1 November: Martin Pluves joins FMSB as Chief Executive Officer. Read our Press Release, 25 July 2019 for more information.
14 October: We published the final Conflicts of Interest Statement of Good Practice, and a Press Release. While relevant to all market participants, this Statement of Good Practice is primarily designed for firms and their employees operating in Europe.
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