Press releases
See more >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/.
Media coverage
See more >FMSB Makes Board Appointments
26 June 2020 – Article by Julie Ros in Profit & Loss.
FMSB Publishes Good Practice Draft on Algo Trading
24 June 2020 – Article by Colin Lambert in Profit & Loss.
FMSB Issues Statement of Good Practice on Algo Trading
25 June 2020 – Article by Editors in Regulation Asia (subscription may be required).
Speeches
See more >‘Disrupting Markets, Disrupting Money, Disrupting Finance’ – Speech delivered by Mark Yallop
Speech delivered by Mark Yallop, FMSB Chair, on 28 February 2020 at the 2020 IOSCO Stakeholder Meeting
‘Behaving Fairly: Artificial Intelligence and Conduct in Wholesale Markets’ – Speech delivered by Mark Yallop
Speech delivered by Mark Yallop, FMSB Chair, on 2 December 2019 at the 2019 Toronto Refinitiv Summit, Canada
‘Behaving Fairly: Artificial Intelligence and Conduct in Wholesale Markets’ – Speech delivered by Mark Yallop
Speech delivered by Mark Yallop, FMSB Chair, on 28 November 2019 at the 3rd International Workshop on Behavioural Financial Regulation and Policy, Bank of Italy, Rome
FCA Discussion Paper ‘Transforming culture in financial services: Driving purposeful cultures’
On 5 March 2020, the Financial Conduct Authority (FCA) published Discussion Paper 20/1 ‘Transforming culture in financial services: Driving purposeful cultures’. The paper is a set of essays which present a range of views from industry leaders, professional bodies and culture experts to help firms embed purposeful cultures. It makes the case for healthy purposeful cultures in firms, leading to good outcomes for their customers, employees and investors. The FCA describes purpose as what a firm and its employees is trying to achieve – the definition of what constitutes success. Mark Yallop (FMSB Chair) co-authored with Michael Cole-Fontayn (AFME Chair and FMSB Non-Executive Director) sector-specific essay 2.6 (page 30).
True Finance – Ten years after the financial crisis, speech by Mark Carney
True Finance – Ten years after the financial crisis Speech given by Mark Carney Governor of the Bank of England Chair of the Financial Stability Board Economic Club of New York 19 October 2018 Read the speech here: https://www.bankofengland.co.uk/speech/2018/mark-carney-economic-club-of-new-york?utm_source=Bank+of+England+updates&utm_campaign=3a5090062e-EMAIL_CAMPAIGN_2018_10_19_04_00&utm_medium=email&utm_term=0_556dbefcdc-3a5090062e-111026421
Mark Yallop shares his views on the key challenges which UK firms face
Take a look at the video of Mark recorded from the 2018 Refinitv Regulatory Summit in Hong Kong in October 2018.
