Our Strategy

Mission Statement

Our mission is to enhance standards of behaviour in FICC markets by developing clear Standards and Guidelines on conduct which fill the gap between high-level principles and detailed regulation.


The Regulatory Void

Existing regulatory approaches to conduct fall into two camps: principles-based and rules-based. Both of these struggle to address the root causes of conduct failure.

There is a “void” between high level principles and low level operational rules which needs to be filled with clearer guidance for market participants.


The FMSB was established as a market-led standards setting body to fill the regulatory “void” in FICC markets. The FMSB produces Standards and other guidance where Members determine that this is required, to enhance and maintain good practice in FICC markets.

The FMSB is a private sector, industry-led body with no formal statutory or regulatory powers. Its outputs are not rules, laws or codes. Nevertheless, FMSB members undertake to adhere to its published Standards.

Strategic Goals

FMSB has four key strategic goals.

1. Analyse and report on emerging FICC market conduct vulnerabilities

  • Identification: Vulnerabilities will be identified by combining the issues identified by the FEMR with (i) analysis of historical conduct cases and (ii) regular horizon scanning of current and emerging issues.
  • Categorisation: Issues to be addressed will be categorized as “generic” cross-market or as market specific so as to leverage FMSB work across the FICC landscape as much as possible.
  • Prioritisation: Issues to be addressed will be prioritised through a methodology which combines quantitative scoring of measurable characteristics that may indicate increased conduct risk with qualitative input (including Member/Constituent priority, pre-emptive effect, time and barriers to outcome).

2. Address areas of uncertainty in specific trading practices

  • Standards Production: The principal focus of the FMSB will be the production of Standards to create a common understanding of good market practice. A formalised work plan and production timeline will increase the speed of production and maintain quality.
  • Additional Output: In addition, the FMSB will, where appropriate, issue Good Practice Guidance in order to best tailor its response and reaction-time to priority issues.

3. Promote adherence to Standards

  • Engagement: The FMSB already has significant engagement but will extend its membership in certain areas. Current members represent 80% of wholesale FICC market sell side activity and manage USD 10 trillion of assets.
  • Adherence: [currently under discussion].

4. Contributing to international convergence of Standards

International Outreach. The FMSB is producing global Standards which reflect the global nature of FICC markets and will work with non-Members, Governments, Regulators and Trade Associations worldwide to promote understanding and adoption of these Standards and other guidance material. This work will be delivered by:

  1. Member sponsorship: Members will be asked to provide sponsorship with home Regulators and where relevant to act as the Lead Sponsor for the FMSB with core constituents.
  2. FMSB Secretariat: The Secretariat will manage a number of Government and Regulator relationships directly.
  3. Codes and Convergence: Reviews required activities and supports the centralised international outreach, driven by Chair and CEO in the first phase.
  4. International Organisations: The Secretariat has engaged with IOSCO and the FSB and, with Members, will support these organisations and their work with G20 governments as appropriate.

Operating Model

Organisation and Governance

  • Advisory Council. Comprises senior representatives from Member firms and commits all Member Firms to FMSB. It will review FMSB strategy and performance.
  • Adherence Oversight Committee. Will be established, with independent representatives, and will, inter-alia, review the annual Adoption Report.
  • Board. Comprises senior market practitioners in an independent capacity to execute FMSB strategy and review and approve outputs.
  • Standing Sub-committees. Comprises market experts to produce FMSB Standards and other materials, deliver the work plan and support horizon scanning.
  • Working Groups. Technical experts producing FMSB Standards and outputs.
  • Secretariat. Supports the FMSB organisational structure. Engages in international outreach

Membership Strategy

The Secretariat will seek to grow the membership of the FMSB in order to ensure that the organisation underlines its legitimacy by representing all users of wholesale markets:

  • Broad Coverage. Ensuring representation of all significant FICC market sectors, including non-traditional liquidity providers and significant user groups.
  • International. Ensuring a representative, international footprint.
  • Proportionate. Ensuring membership profile balances market sectorial representation and structure without becoming unwieldy.