Financial Markets Standards Board (“FMSB”) has today published a Statement of Good Practice (“SoGP”) on Grey Market Trading (“GMT”) as a Transparency Draft, intended to help firms judge whether GMT is appropriate in different contexts.
GMT is the conditional trading of securities before they are declared free to trade (FTT) by a syndicate and may begin from the point a deal is publicly announced to the market. Grey markets help to facilitate price discovery, liquidity and risk management in a security before it is formally issued. However, there are potential risks associated with engaging in GMT activity, particularly where banks hold a syndicate role.
Developed by a Working Group made up of firms from across FMSB Members, the SoGP is intended to: promote a common understanding of the role, benefits and risks of Grey Market Trading across issuers, investors and syndicate banks; and identify key considerations for syndicate banks to take into account before deciding to conduct GMT in different contexts.
Next Steps
The Transparency Draft SoGP is now open for comments from the wider industry until 15 February 2026. Please address any feedback to secretariat@fmsb.com, making clear that the feedback is related to FMSB’s Transparency Draft SoGP on Grey Market Trading.
Notes to editors
About FMSB:
- Financial Markets Standards Board (FMSB) is an industry-led, member-funded global standards body for the wholesale financial markets.
- Created out of the Fair and Effective Markets Review (FEMR) in 2015, FMSB brings together its Members from banks, investment institutions, infrastructure and information providers, corporates, pension funds, non-bank liquidity providers and interdealer brokers, to develop Standards, Statements of Good Practice and Spotlight Reviews that raise standards of behaviour, competence and awareness – to promote the fairness and effectiveness of global wholesale financial markets.
- As well as standard setting, subject matter experts from member firms debate issues in working groups and are able to benchmark their approaches against industry peers, thus helping to lift standards of conduct.
- FMSB’s full membership list is here
For more information:
Laura Conaghan
+44 (0)7929 72669