The FICC Markets Standards Board (“FMSB”) was established in 2015 as a private sector response to the Conduct problems revealed in global wholesale Fixed Income Currencies and Commodities (“FICC”) markets after the financial crisis.
FMSB’s purpose is to help raise standards of conduct in global wholesale markets and thereby make those markets more transparent, fair and effective.
FMSB’s outputs are voluntary Standards and other guidance, developed by their membership and designed to illustrate best practice to all market participants, in areas of uncertainty.
These standards are intended to reduce the continuing uncertainty about acceptable practice in opaque and unregulated areas, which is a hazard for FMSB’s members (and other market participants). The ambition is that FMSB’ Standards can be developed quickly and pre-emptively, adopted rapidly and align naturally with the new regulatory approach to behaviour, conduct, compliance, culture and governance in financial services.
FMSB’s approach is open and consultative: working with any interested national and international body, avoiding any duplication and overlap and sharing thinking and output with any other organisation worldwide wishing to use, adopt or copy materials.
FMSB is not a regulatory authority, a trade association, a lobby group, a consultant or a legal advisor; nor does it compete with any of these organisations. FMSB does not produce rules, laws or codes nor have any statutory or regulatory authority.
For further information, please visit FMSB website.
HSBC and FMSB
HSBC is represented on FMSB’s Advisory Committee by Samir Assaf, CEO of HSBC Global Banking and Markets, and on FMSB’s Board by Chris Salmon, Chief Control Officer of Markets at HSBC. HSBC also has representation on many relevant FMSB’s working groups.
FMSB had published four Standards by the end of 2018:
In line with the FMSB Membership rules, HSBC has reviewed its operational policies and procedures and issued the attestation statement below.
HSBC’s FMSB Attestation Statement (as of 3 July 2019)
HSBC’s Global Banking & Markets businesses acknowledge that the Standards published by the FICC Markets Standards Board (“FMSB”) represent generally recognised good practice in the wholesale Fixed Income, Commodity and Currency (“FICC”) markets. The Institution confirms that it is committed to conduct its FICC market activities (its “Activities”) in a manner consistent with the Core Principles contained in FMSB Standards, and to have internal policies, procedures and controls reasonably designed to give effect to those Core Principles where they are applicable to its Activities, in a manner that is commensurate with the nature of its Activities in the relevant entity or jurisdiction. This statement of commitment applies to all Standards published by FMSB in final form prior to 31 December 2018.
FMSB Standards in scope of this attestation:
002-2016_U Binary Options for the Commodities Market
001-2016_U Reference Price Transactions for the Fixed Income Market
001-2017 New Issue Process Standard for the Fixed Income Markets
001-2018_U Risk Management Transactions for New Issuance Standard
HSBC's FMSB Pre Marketing Investor Selection and Allocation Procedure
In accordance with the FMSB New Issue Process Standard for the Fixed Income Markets, HSBC's FMSB Pre Marketing Investor Selection and Allocation Procedure provides a summary of the HSBC Global Banking procedures that are globally applicable to the pre-marketing and allocation processes in relation to best efforts syndicated offerings of fixed income bonds in the wholesale markets.
Last updated: 28 June 2019