Appointments to the FMSB Limited Board

26 June 2020 – The FICC Markets Standards Board (FMSB) announces three new appointments to the board of FMSB Limited. Martin Pluves, CEO of FMSB, has been appointed to the board as executive director, reflecting the highly successful completion of his first six months as CEO of FMSB and his exemplary leadership during the past few months of pandemic lockdown. His extensive knowledge and experience of FICC markets and their infrastructure, and his previous leadership positions in the industry, are well known to all who have worked with Martin. The board has also appointed Niki Beattie and Philippa Foster Back CBE as new non-executive directors. Niki Beattie has extensive corporate governance experience in financial markets and is currently Chair of both XTX Markets Ltd, a quantitative-driven electronic market-maker, and Aquis Exchange PLC, a pan-European MTF, as well as a non-executive director of IRESS, a listed Australian financial technology company, and Kepler Cheuvreux International, the French brokerage company. Niki is also the CEO and Founder of Market Structure Partners, an independent consulting firm providing strategic advice on financial market structure issues to global exchanges, clearing houses, technology firms, market participants and government bodies. Prior to setting up Market Structure Partners, she spent 14 years at Merrill Lynch across a number of roles, including EMEA Head of Market Structure. Philippa Foster Back CBE has recently stepped down as Director of the Institute of Business Ethics (IBE), a role she has held since 2001. The IBE’s work is focused on promoting high standards of business behaviour based on ethical values. Philippa was previously Group Treasurer at EMI Group, Group Finance Director at DC Gardner Group and Group Treasurer at Bowater. Philippa has also held a number of trustee, major review committee and non-executive roles throughout her career. She is currently a BEIS/FRC Wates Coalition Group member, a member of the  ACT Advisory Panel and a member of the CISI Board and its Integrity Forum. Mark Yallop, Chairman of FMSB said: “I’m delighted to welcome Martin, Niki and Philippa as new directors of FMSB. Martin’s dedication to FMSB’s mission and personal passion for our work is evident to all who have worked with him the last months. Niki and Philippa bring significant knowledge and experience of wholesale markets and of promoting high standards in business practices. Martin, Niki and Philippa will all play an important role in the governance and direction of FMSB as we continue to work with our members to enhance standards of behaviour in the wholesale FICC markets.” Martin, Niki and Philippa join the Board alongside Chair, Mark Yallop, and existing non-executive directors Michael Cole-Fontayn, Charles Nichols, Edward Ocampo and Stephen O’Connor. Media contacts Maitland/AMOAndy Donald or Sam Turvey+44 207 379 5151adonald@maitland.co.uksturvey@maitland.co.uk Notes to Editors1) The Fixed Income, Currencies and Commodities Markets Standards Board (FMSB) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets.FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks. Developing best market practice through the production of standards and other materials that create a common understanding. Driving global adherence through ensuring standards are comprehensible and practical. Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, sub-committees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed on the FMSB website at fmsb.com/who-we-are/.

FMSB issues new Statement of Good Practice on algorithmic trading

24 June 2020 – The FICC Markets Standards Board (FMSB) published a new Statement of Good Practice on Algorithmic Trading in FICC Markets as a transparency draft for market consultation. As the use of computer algorithms in FICC markets continues to increase, the potential for such trading activities to adversely impact market or firm stability, or result in harm to clients, also rises. Accordingly, algorithmic trading has increasingly been the subject of regulatory scrutiny and intervention. This Statement of Good Practice draws on the extensive work conducted by regulators to date and seeks to further enhance the integrity and effective functioning of FICC markets by promoting good conduct and governance practices for participants engaged in algorithmic trading across all FICC asset classes and markets, in particular those subject to less stringent regulatory requirements. It sets out 10 Good Practice Statements which cover the governance of, and management of conduct risks associated with, the use of algorithmic trading. Ciara Quinlan, Global Head of Principal Electronic Trading, FX, Rates and Credit at UBS, said: “The use of algorithmic trading systems across FICC markets has increased significantly in recent years and having robust governance structures in place to help manage the risks associated with this rise in algorithmic trading is critical. This Statement of Good Practice builds on the substantial work conducted by regulators in this space and should help further drive good governance practices particularly in less regulated asset classes and markets”. Chris Dickens, Chief Operating Officer EMEA, Global Markets at HSBC said: “This Statement of Good Practice seeks to promote good conduct and governance practices applicable to algorithmic trading activities and demonstrates the shared commitment of market participants to enhancing the integrity and functioning of FICC markets.” Ciara and Chris are co-chairs of the FMSB Working Group that collectively produced this Statement of Good Practice. 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 with the final document expected to be published shortly thereafter. Media contactsMaitland/AMOAndy Donald or Sam Turvey+44 207 379 5151adonald@maitland.co.uksturvey@maitland.co.uk Notes to Editors1) The Fixed Income, Currencies and Commodities Markets Standards Board (FMSB) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets.FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks. Developing best market practice through the production of standards and other materials that create a common understanding. Driving global adherence through ensuring standards are comprehensible and practical. Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, sub-committees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed on the FMSB website at fmsb.com/who-we-are/.

FMSB publishes a Spotlight Review on navigating conduct risks in LIBOR transition

11 June 2020 – The FICC Markets Standards Board (FMSB) has today published a Spotlight Review on LIBOR transition with 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. As the risks associated with the continued provision of new LIBOR-linked products increase, ‘LIBOR transition: Case studies for navigating conduct risks’ highlights issues for market participants to address when offering new products to clients or changing performance benchmarks. While the LIBOR transition presents market participants with unique challenges, many of the conduct-related risks, and the means of managing them, are not novel. The paper therefore builds on existing FMSB principles and relevant regulatory expectations, combining the broad expertise of FMSB’s IBOR Transition Working Group participants, and explores ways in which firms can manage the uncertainties and associated risks of the transition through the lens of non-prescriptive good practice observations. The paper includes four practical case studies which cover cash and derivative products and performance benchmarks. The case studies are relevant across the sell-side, buy-side and corporates. This paper has been developed by FMSB’s IBOR Transition Working Group which has representation from a wide range of FMSB member firms. FMSB intends to add to this Spotlight Review during the transition process to include additional case studies focusing on areas of uncertainty that are of particular concern to market participants. Martin Pluves, CEO of FMSB, said: “Managing the challenges of LIBOR discontinuation and the transition to risk-free rates is a major undertaking for financial market participants the world over. FMSB’s role is to support its broad membership in identifying and managing conduct risks arising from the transition and improving the fairness and effectiveness of global markets. I am delighted to announce the publication of this very practical Spotlight Review, which illuminates challenges from market practitioners’ perspectives and explores approaches for navigating various risks posed by the transition to risk-free rates.”   Chris Salmon, FMSB Chair of the IBOR Transition Working Group, and Chief Control Officer for Global Markets at HSBC, explained: “With the deadline fast approaching for the discontinuation of the LIBOR interest rate benchmark, FMSB’s practical guidance and case studies will be, now more than ever, relevant to corporates, insurers, asset managers and banks, who are currently managing their transition to alternative risk-free reference rates.” Tushar Morzaria, Chair of the Sterling Risk-Free Reference Rates Working Group (RFRWG), said: “This Review by the FMSB is a very welcome extension of the work undertaken by the Sterling Risk-Free Reference Rates Working Group. The transition away from LIBOR to more reliable and robust rates has long been a regulatory and market imperative and the FMSB work will fill an important role alongside the technical work already completed by the RFRWG and other bodies internationally.” Media contactsMaitland/AMOAndy Donald or Sam Turvey+44 207 379 5151adonald@maitland.co.uksturvey@maitland.co.uk Notes to Editors1) The Fixed Income, Currencies and Commodities Markets Standards Board (FMSB) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets.FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks. Developing best market practice through the production of standards and other materials that create a common understanding. Driving global adherence through ensuring standards are comprehensible and practical. Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, sub-committees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed on the FMSB website at fmsb.com/who-we-are/.

FMSB publishes Spotlight Review on data management in the financial system

11th May 2020 – The FICC Markets Standards Board (FMSB) has today published its second Spotlight Review examining the crucial role of data management in the stability and resilience of wholesale FICC markets and financial systems. The Spotlight Review considers: seven sources of critical data risk covering business continuity, data confidentiality, trading, aggregate exposure, regulatory enforcement, ownership rights and security risks relating to misconduct; regulatory authorities’ work in this field and the benefits of increased standardisation across different international jurisdictions; and eight key components to promote effective data governance covering the data lifecycle, data policies, data taxonomy, mapping data sources, data movement and lineage, data classification, data leakage detection and data quality. It establishes the foundational need for robust data governance and management strategies, both within firms and between different markets participants who are active in rapidly changing wholesale FICC markets. The paper highlights the significant benefits to market participants from moving to a more centralised data strategy, recognising the magnitude of centralisation will vary from firm to firm depending on size, complexity and business models. Martin Pluves, CEO of FMSB, said: “I am delighted that FMSB is publishing this thoughtful paper on data management. Data drives today’s FICC markets. Ensuring confidence in data is vital to stability and resilience of the financial system. With exponential growth in the volume and sophistication of data, there are opportunities for increased transparency and improved overall efficiency of FICC markets. There are also great challenges and significant risks, explored in this paper. Given the growing importance of data there is an increasing interest in developing standards in this area and on strengthening data governance, areas FMSB and its diverse members are well placed to address.” Gareth Ramsay, Executive Director of Data at the Bank of England, said: “The rapid pace of systems development and the increasing dependence of the financial system on data is a key strategic focus for the Bank. Therefore, the FMSB’s Spotlight Review is a welcome exploration of the critical role of data management for the financial industry. The key themes in the review, particularly the importance of data governance and standardisation, complement the Bank’s ongoing data collection review, which aims to make data collection more efficient for the Bank and for firms, and to improve our ability to use that data effectively.” This Spotlight Review is the second in a series that is collectively looking at issues of FICC market structure and the impact of regulatory and technological change on the fairness and effectiveness of wholesale markets. Media contacts Maitland/AMOAndy Donald or Sam Turvey+44 207 379 5151adonald@maitland.co.uksturvey@maitland.co.uk Notes to Editors 1) The Fixed Income, Currencies and Commodities Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets. FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: i) Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks.ii) Developing best market practice through the production of standards and other materials that create a common understanding.iii) Driving global adherence through ensuring standards are comprehensible and practical.iv) Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, sub-committees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed and available on the FMSB website at fmsb.com/who-we-are/.

FMSB publishes Spotlight Review on data management in the financial system

11th May 2020 – The FICC Markets Standards Board (FMSB) has today published its second Spotlight Review examining the crucial role of data management in the stability and resilience of wholesale FICC markets and financial systems. The Spotlight Review considers: seven sources of critical data risk covering business continuity, data confidentiality, trading, aggregate exposure, regulatory enforcement, ownership rights and security risks relating to misconduct; regulatory authorities’ work in this field and the benefits of increased standardisation across different international jurisdictions; and eight key components to promote effective data governance covering the data lifecycle, data policies, data taxonomy, mapping data sources, data movement and lineage, data classification, data leakage detection and data quality. It establishes the foundational need for robust data governance and management strategies, both within firms and between different markets participants who are active in rapidly changing wholesale FICC markets. The paper highlights the significant benefits to market participants from moving to a more centralised data strategy, recognising the magnitude of centralisation will vary from firm to firm depending on size, complexity and business models. Martin Pluves, CEO of FMSB, said: “I am delighted that FMSB is publishing this thoughtful paper on data management. Data drives today’s FICC markets. Ensuring confidence in data is vital to stability and resilience of the financial system. With exponential growth in the volume and sophistication of data, there are opportunities for increased transparency and improved overall efficiency of FICC markets. There are also great challenges and significant risks, explored in this paper. Given the growing importance of data there is an increasing interest in developing standards in this area and on strengthening data governance, areas FMSB and its diverse members are well placed to address.” Gareth Ramsay, Executive Director of Data at the Bank of England, said: “The rapid pace of systems development and the increasing dependence of the financial system on data is a key strategic focus for the Bank. Therefore, the FMSB’s Spotlight Review is a welcome exploration of the critical role of data management for the financial industry. The key themes in the review, particularly the importance of data governance and standardisation, complement the Bank’s ongoing data collection review, which aims to make data collection more efficient for the Bank and for firms, and to improve our ability to use that data effectively.” This Spotlight Review is the second in a series that is collectively looking at issues of FICC market structure and the impact of regulatory and technological change on the fairness and effectiveness of wholesale markets. The Spotlight Review is available for download here: fmsb.com Media contacts Maitland/AMO Andy Donald or Sam Turvey +44 207 379 5151 adonald@maitland.co.uk sturvey@maitland.co.uk Notes to Editors 1) The Fixed Income, Currencies and Commodities Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets. FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: i) Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks. ii) Developing best market practice through the production of standards and other materials that create a common understanding. iii) Driving global adherence through ensuring standards are comprehensible and practical. iv) Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, sub-committees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed and available on the FMSB website at fmsb.com/who-we-are/. AstraZeneca Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Bank of New York Mellon Barclays BHP BlackRock Bloomberg BNP Paribas BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco JP Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets

FMSB publishes Spotlight Review on Algorithmic Trading and Machine Learning

23rd April 2020 – The FICC Markets Standards Board (FMSB) has today published its first Spotlight Review, looking at emerging themes and challenges in algorithmic trading and machine learning. This Spotlight Review highlights important emerging issues in this area to assist market participants in considering how to address challenges that may arise. This Spotlight Review considers: managing model risk in algorithmic trading; challenges for algorithmic market making in less liquid instruments; adoption of machine learning in algorithmic market making; increased use of execution algorithms; and best practice, and the role for practitioner-led solutions. FMSB believes this Spotlight Review will be of interest to a wide audience of participants in global wholesale FICC markets and hopes it will generate further discussion on these important topics and their relevance to future standards work by FMSB. Mark Yallop, Chair of FMSB, said: “This Spotlight Review, the first that FMSB has published, looks at the very important issue of algorithmic trading and machine learning. This is a space that is developing fast and creating exciting opportunities in markets, but also an emerging area of risk and vulnerability. We are very grateful for the insights and support provided by FMSB members and other industry experts in producing this document. We hope it will create further discussion on the nascent challenges market participants face and also inform potential topics for FMSB’s future work.” Ciara Quinlan, Global Head of Principal Electronic Trading, FX, Rates and Credit at UBS, said: “As the adoption of algorithmic trading expands into new products and new machine learning technologies emerge, model risk is likely to become increasingly relevant. This review discusses these important themes and makes a credible case for industry-led best practices in this area.” Mark Meredith, Head of FX E-Trading and Algorithmic Trading at Citigroup Global Markets Limited said: “Citi welcomes FMSB’s work in this paper on emerging themes in algorithmic trading and the scope for best practices in this area.” Both Ciara and Mark are FMSB Standards Board Members and provided input into the Spotlight Review. This Spotlight Review is the first in a series that will collectively consider issues of FICC market structure and the impact of regulatory and technological change on the fairness and effectiveness of wholesale markets. The next publication will cover the role of data management in the financial system. Additionally, FMSB members are advancing a Statement of Good Practice on Algorithmic Trading and this topic is certain to remain an important focus for transparency, fairness and effectiveness of trading practices in the coming years. The Spotlight Review is available for download here: fmsb.com Media contacts Maitland/AMO Andy Donald or Sam Turvey +44 207 379 5151 adonald@maitland.co.uk sturvey@maitland.co.uk Notes to Editors 1) The Fixed Income, Currencies and Commodities Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale fixed income, currencies and commodities (FICC) markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets. FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues in FICC markets. Drawing on the insight of members and industry experts, they provide a way for FMSB to surface nascent challenges market participants face and may inform topics for future work. Spotlight Reviews will often include references to existing law, regulation and business practices. However, they do not set or define any new precedents or standards of business practice applicable to market participants. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. FEMR set FMSB four strategic goals: i) Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks. ii) Developing best market practice through the production of standards and other materials that create a common understanding. iii) Driving global adherence through ensuring standards are comprehensible and practical. iv) Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. In specialist, focused committees, subcommittees and working groups, industry experts debate issues and develop FMSB Standards and Statements of Good Practice, and undertake Spotlight Reviews that are made available to the global community of FICC market participants and regulatory authorities. 4) FMSB members bring together sell-side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed and available on the FMSB website at fmsb.com/who-we-are/ AstraZeneca Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Bank of New York Mellon Barclays BHP BlackRock Bloomberg BNP Paribas BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco JP Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets

FMSB publishes its Annual Report 2019 – Towards Fairer Markets

25 February 2020 – The FICC Markets Standards Board (FMSB) has today issued its 2019 Annual Report setting out the progress made to enhance standards of behaviour in the wholesale fixed income, currencies and commodities (FICC) markets and its priorities for the year ahead. FMSB is a private sector, practitioner-led organisation whose membership collectively accounts for a substantial share of the business conducted in wholesale FICC markets worldwide. The Annual Report gives an overview of the work undertaken by FMSB during 2019 in pursuit of the four strategic goals set out in the Fair and Effective Markets Review, which was conducted jointly by HM Treasury, Bank of England, and Financial Conduct Authority: Identifying global market vulnerabilities through scanning the horizon for emerging business practice risks Developing best market practice through the production of standards and other materials that create a common understanding Driving global adherence through ensuring standards are comprehensible and practical Developing consistent approaches to market practices through identifying gaps and inconsistencies in existing regulatory standards and working with other standards setting bodies Alongside the five Standards and ten Statements of Good Practice already published, FMSB has a significant amount of work in progress and planned for the year ahead to support its strategic goals, including: Developing and publishing further Standards, Statements of Good Practice and Spotlight Reviews Looking at the impact of FMSB Standards to understand how business practices are changing in response Finalising a series of publications on the role of data in ensuring fair and effective FICC markets Exploring IBOR benchmark reform and the remaining risks and issues that could arise as the industry transfers to alternative risk-free rates Looking at the commodities markets in metals and energy through the recently established working groups in these areas Assessing the viability of creating a series FICC market practice training programmes that could be recognised across institutions and locations  Mark Yallop, Chair of FMSB said: “FMSB has achieved a great deal since it was created, and in 2019 we made significant progress against our central objective of raising standards of conduct in global wholesale FICC markets so that they are more transparent, fair and effective for all participants. We now have 15 published Standards or Statements of Good Practice, with more in the pipeline. “We are continuing to scan the horizon for new vulnerabilities, recognising that markets are evolving constantly and we see new challenges today that didn’t exist when FMSB was created, including the opportunities and potential hazards afforded by new technology, in particular the growth of machine learning and data science. “We have a significant amount of activity planned for 2020, including our focus on assessing the potential risks that could arise with the replacement of IBOR with other near risk-free rates. This is a clear example of FMSB’s important role in global markets. “As a network organisation, we rely on expert market practitioners from across member firms. They commit their time, dedication, and insight to the FMSB, and I would like to thank all our members and their people for the strong commitment and support we receive.” FMSB continues to receive strong support from UK and international central banks and regulatory bodies. Alongside others, Mark Carney, Andrew Bailey and Ashley Alder expressed their support for the work of FMSB in the Annual Report. Mark Carney, Governor of the Bank of England, said: “A new economy is emerging, driven by immense changes in technology, the reordering of global economic power, and the growing pressures of climate change. This transition needs markets that are effective and fair and that balance innovation and resilience. I support the FMSB’s work to achieve that goal. The private sector is responsible for supporting competition in FICC markets and managing conduct risks. By developing standards on transparency and fairness, the FMSB promotes the new finance needed for the new economy.”   Andrew Bailey, CEO of the Financial Conduct Authority, said: “The FCA always and only regulates in the public interest. We place the strongest emphasis on outcomes and principles, and understand that rules alone cannot deliver these particularly in wholesale markets that are global in nature. The FCA sees the FMSB’s role as a practitioner-led standards setter as an important supplement to the regulatory framework to improve business practices and rebuild trust in the financial system. The FCA supports the FMSB’s ambitious workplan to deliver more transparent, fair and effective global wholesale markets.”   Ashley Alder, Chair of IOSCO Board said: “Eight years have now passed since multiple conduct failures in wholesale finance first came to light, resulting in unprecedented fines and other sanctions. In response, FMSB has been unrelenting in harnessing the deep expertise of its participants to develop a series of detailed, actionable industry standards aimed at restoring confidence and trust in FICC markets. IOSCO commends and supports this important work.” The full annual report is available to view at fmsb.com. Media contacts Maitland/AMO Andy Donald or Sam Turvey +44 207 379 5151 adonald@maitland.co.uk sturvey@maitland.co.uk   Notes to Editors 1) The Fixed Income, Currencies and Commodities (‘FICC’) Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale FICC markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. FMSB Standards set out Core Principles and accompanying guidance on the most important aspects of practice where ambiguity risks undermining the transparency, fairness and effectiveness of markets. FMSB Statements of Good Practice set out clear expectations and guidance on good practice in relation to broader areas of uncertainty in wholesale FICC markets. FMSB Spotlight Reviews encompass a broad range of publications used by FMSB to illuminate important emerging issues. Drawing on the insight of multiple members and industry experts, they provide a way for FMSB to surface nascent challenges and address potential topics for future work, either in setting standards or establishing good practice. All FMSB publications are available on the FMSB website at fmsb.com/our-publications/. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review, which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. All materials relating to the Effective Markets Review are available on the Bank of England’s website at: www.bankofengland.co.uk/markets/fair-and-effective-markets 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. 4) FMSB members bring together sell side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are listed and available on the FMSB website at fmsb.com/who-we-are/: AstraZeneca Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Bank of New York Mellon Barclays BHP BlackRock Bloomberg BNP Paribas BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco JP Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets

FMSB appoints Christopher Rich as General Counsel

11 February 2020: The FICC Markets Standards Board (FMSB), a standard setting body for the global wholesale fixed income, currencies and commodities (FICC) markets, today announces the appointment of Chris Rich as General Counsel. Chris will join FMSB on 1 April 2020 from Linklaters, where he is a Managing Associate in the Financial Regulation Group. He is currently on secondment with FMSB and will therefore transfer over full-time in April. In this newly created role, Chris will be responsible for advising FMSB executive management on all legal matters, as well as supporting FMSB members in the development of new Standards and Statements of Good Practice. He will also be responsible for managing all the organisation’s legal and regulatory affairs. Chris joined Linklaters in 2011 and has since worked with a wide range of financial services clients including secondments to RBS, Deutsche Bank and BNP Paribas. FMSB is a practitioner-led, membership organisation with active participation from 50 corporate, buy-side, sell-side, markets services and infrastructure providers. Martin Pluves, CEO of FMSB, said: “I am delighted that Chris Rich is joining FMSB as our first General Counsel. This is a very important role for both FMSB and its members as we continue to develop the organisation and work to raise standards in wholesale markets. He has significant experience of working with the financial services sector and in supporting FMSB. I look forward to him joining us in April and supporting our ambitions for 2020 and beyond.” Chris Rich said: “FMSB has an impressive track record of partnering with its members and other market participants and has a critical part to play in global wholesale markets. I have been very impressed with the work FMSB is doing and am looking forward to working with Martin, the rest of the FMSB team and member firms to provide them with strong legal support and guidance.”   Media contacts  Maitland/AMO Andy Donald or Sam Turvey T: +44 207 379 5151 E: adonald@maitland.co.uk sturvey@maitland.co.uk   Notes to Editors  1) The Fixed Income, Currencies and Commodities (‘FICC’) Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale FICC markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review, which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. Reporting to the Standards Board are a number of committees, sub-committees and working groups. There is also an Advisory Council representing the interests of member firms. 4) FMSB members bring together sell side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are: AstraZeneca Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Bank of New York Mellon Barclays BHP BlackRock Bloomberg BNP Paribas BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco JP Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets  

FMSB issues new ‘Statement of Good Practice for Participation in Sovereign and Supranational Auctions in Fixed Income Markets’

2 December 2019: The FICC Markets Standards Board (FMSB) today issued a Transparency Draft of a new Statement of Good Practice for Participation in Sovereign and Supranational Auctions (‘SSAs’) in Fixed Income Markets. A common way for government or supranational bonds to be issued is through a publicly announced auction. Auctions involve multiple parties/participants including issuers (debt management offices/agencies/treasuries), primary dealers, dealers and investors. The interaction between the different roles and objectives of market participants, the issuer’s chosen price formation mechanism, type of auction system and differing transaction types can lead to conflicts of interest. These conflicts of interest may lead to behaviours that may be detrimental to fair and effective markets (as well as potentially breaching applicable law or regulation). This Statement of Good Practice seeks to identify some of the key conflicts of interest that can arise, as well as setting out measures to enhance market transparency by providing clearly articulated information as to how SSAs work and identifying principles governing the management of conflicts that may arise. There are eight good practice statements which firms should consider when participating in these markets. Charles Bristow, Chair of the FMSB Rates Sub-Committee and Global Head of Rates Trading at J.P. Morgan said: “This Statement of Good Practice has brought together issuers, dealers and investors from across the sovereign and supranational market to explain how the market functions, and the types of auctions, investor activity, and conflicts of interest that can arise through the normal course of business. It reflects a shared spirit of commitment to fair and effective markets, created through greater transparency, that countries and economies rely upon to receive the regular funding that they need in order to thrive.” Martin Pluves, FMSB’s Chief Executive Officer said: “On behalf of its members, FMSB is very pleased to publish this latest Transparency Draft Statement of Good Practice for wider market consultation and feedback. The principles set out in this Statement make an important contribution to our work to raise standards of conduct at the core of capital markets in Sovereign and Supranational Debt Auctions.” FMSB members and other interested parties are invited to comment on the proposed Statement of Good Practice. This consultation will run until 27 January 2020 with the final document expected to be published shortly thereafter. This is the tenth Statement of Good Practice to have been published by FMSB since it was set up in 2015 in response to the Fair and Effective Markets Review with a mandate to improve conduct and raise standards in the wholesale fixed income, currencies and commodities markets. All materials officially published by FMSB are available at www.fmsb.com Media contacts Maitland/AMO Andy Donald or Sam Turvey +44 207 379 5151 adonald@maitland.co.uk sturvey@maitland.co.uk   Notes to Editors 1) The Fixed Income, Currencies and Commodities (‘FICC’) Markets Standards Board (‘FMSB’) is practitioner led, funded by members and operated by the major participants in wholesale markets to improve standards of conduct in wholesale FICC markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective for all participants is at the heart of FMSB’s mission. 2) Setting up the FMSB was one of the main recommendations from the Fair and Effective Markets Review, which was conducted by HM Treasury, the Bank of England, and the Financial Conduct Authority. 3) FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell-side participants and intermediaries and infrastructure providers such as exchanges and custodians. Reporting to the Standards Board are standing Committees addressing Market Practices, Codes & Standards Convergence, Conduct & Ethics, and Electronic Trading and Technology. The Market Practices Committee is split into four asset-class specific committees. There is also an Advisory Council representing the interests of member firms. 4) FMSB members bring together sell side investment banks, buy-side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The member firms are: AstraZeneca Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Bank of New York Mellon Barclays BHP BlackRock Bloomberg BNP Paribas BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco JP Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets

FMSB finalises Conflicts of Interest Statement of Good Practice

14 October 2019: The FICC Markets Standards Board (FMSB) has today published the final version of a Statement of Good Practice on the issue of Conflicts of Interest. This Statement of Good Practice aims to provide practical, working level guidance and examples for market participants to draw on, as they consider ways to prevent, manage and mitigate conflicts of interest that arise within their firms. Conflicts of interest may arise between (i) clients; (ii) a firm and its client(s); and (iii) employees and a firm/client(s). These conflicts have the potential to be detrimental, not only to the firms involved, but to clients and the financial markets more generally. Dealing with them effectively is one way in which instances of this kind of market misconduct can be minimised. The means of preventing, managing or mitigating conflicts of interest that are suggested in the Statement of Good Practice include periodic reviews within each business area to identify scenarios or situations that could potentially create a conflict, as well as ensuring the appropriate identification and escalation procedures for actual conflicts. There are eight specific Good Practice Statements that firms should look to when considering their own working practice, including: having the necessary policies, procedures and training in place across a firm; having senior management provide oversight and governance around how conflicts of interest are identified and managed; and having controls in place to either prevent conflicts of interest from arising, as well as managing or mitigating those that do arise. This Statement of Good Practice is being published as part of FMSB’s remit to improve conduct and raise standards in the wholesale Fixed Income, Currencies and Commodities markets. It was issued previously as a Transparency Draft and the final version takes account of comments and feedback received from market participants and Members. All materials officially published by FMSB are available at www.fmsb.com. Media contacts  Maitland/AMO Andy Donald or Sam Turvey +44 207 379 5151 adonald@maitland.co.uk; sturvey@maitland.co.uk   Notes to Editors  1) The Fixed Income, Currencies and Commodities (“FICC”) Markets Standards Board (“FMSB”) is an independent body set up by market practitioners to improve standards of conduct in wholesale FICC markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Ensuring that wholesale FICC markets are transparent, fair and effective is at the heart of the FMSB’s mission. 2) Setting up the FMSB was one of the main recommendations to emerge from the Fair and Effective Markets Review, which was conducted by HM Treasury, the Bank of England and the Financial Conduct Authority. 3) The FMSB has a Standards Board drawn from senior executives from across wholesale markets, from corporate clients, asset managers, sell side participants and intermediaries and infrastructure providers such as exchanges and custodians. Reporting to the Standards Board are standing sub-committees addressing Market Practices, Codes & Standards Convergence, Conduct & Ethics and Electronic Trading and Technology. The Market Practices sub-committees are split into 4 asset-class specific committees. There is also an Advisory Council representing the interests of Member firms. 4) The FMSB’s Members bring together sell side investment banks, buy side asset managers, market infrastructure providers and exchanges, custodians and users of the market such as corporates. This constitution is unique. The Member firms are: Australia and New Zealand Banking Group BAE Systems Bank of America Merrill Lynch Barclays BHP BlackRock Bloomberg BNP Paribas BNY Mellon BP Citadel Securities Citigroup Global Markets Limited Crédit Agricole CIB Credit Suisse Deutsche Bank Euronext FX Inc. Goldman Sachs HSBC Invesco J.P. Morgan Legal & General Investment Management Linklaters (Legal Advisor) Lloyds Banking Group London Stock Exchange Group M&G Investment Management Limited MarketAxess Morgan Stanley & Co. International plc National Australia Bank Nomura RBS Refinitiv Rio Tinto Royal Bank of Canada Royal Dutch Shell Royal Mail Group Société Générale Standard Chartered Standard Life Aberdeen TP ICAP Tradeweb Tradition UBS Vodafone XTX Markets