On June 30, 2016, the FMSB published a draft standard for Reference Price Transactions for the fixed income markets. This is the first standard that the FMSB has published since it was established in June 2015 in response to the Fair and Effective Markets Review conducted by HM Treasury, the Bank of England and the FCA. The FMSB’s objective is to improve conduct in the wholesale FICC markets. Feedback on the proposed standards were due by September 8, 2016. The standards serve as a supplement to applicable law, rules and regulation and seek to deal with traders’ conflicts of interests where hedging entered into by the liquidity provider could influence the reference price transaction. Once finalized, the standard will apply to all FMSB member firms (just over 30 firms to date) on a global basis.

The proposed standard is available at: http://www.femr-mpp.co.uk/wp-content/uploads/2016/06/16-06- FMSB_ReferencePriceTransactions_FIMarkets_TransparencyDraft.pdf