This Standard sets out expected behaviours for participants in the secondary FICC markets in relation to the execution of Large Trades. The Standard focuses on Large Trades due to the heightened conduct risks associated with their execution and the greater potential market impact of such activity compared with smaller transactions.
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 that are applicable to the execution of all Large Trades between dealers and clients, and distinguishes between obligations applicable to market participants who act as either an agent or a principal when executing Large Trades.
FMSB members and other interested parties are invited to comment on the proposed Standard. This consultation will run until 16 March 2021 with the final document expected to be published shortly thereafter.